Published: September 12, 2025
MONROVIA — The sharp fall in the exchange rate between the U.S. dollar and the Liberian dollar has brought little relief to traders, and market women say prices remain high despite the stronger Liberian currency.
By Lennart Dodoo & Alphanso G. Kalama
The rate has slipped from L$200 to US$1 to about L$176 in recent days, a nearly 12 percent gain for the Liberian dollar. But businesswomen at some of Monrovia’s busiest marketplaces, including the Nancy B. Doe Market, RedLight Market and the Old Road Market complain that wholesalers and suppliers continue to fix their prices as though the rate were unchanged, leaving both sellers and buyers frustrated.
“Things are not really changing,” said Finda Saah, a vendor at Nancy B. Doe Market in Sinkor. “Things that we need to buy in the U.S., maybe when U.S. was one-to-one, when we carry US$5, maybe they will give you L$1,000. Now they are not selling it in U.S. No, but they are selling it in Liberty (Liberian dollars). They stay on the same L$1,000 for US$5. But when you carry U.S. now to buy, they will not hold the U.S dollars. They say buy in Liberty.”
Saah explained that the adjustment has hurt her business rather than improved it. “Our customers are complaining that the U.S. rate is dropping, and things prices are not dropping because we’re already buying our market at a higher rate. I’ve not even made L$500 yet today,” she said, adding that sales have collapsed as buyers stay away.
For Rebecca Kenneth, another trader, the drop in the exchange rate is meaningless unless prices fall in line with it. “For the rate to drop, you don’t have much problem with it,” she said. “The main problem, they save the same price. When the rate drops, they’re supposed to bring the prices down so that we will not lose. Because we can’t change the money higher rate like we were changing the money for L$1,000 for US$5. Now they’ve dropped. And you go buy the goods, the poor said, they rate high for the goods.”
She added that both U.S. dollars and Liberian dollars are still accepted, but traders pay more than the official equivalent. “The thing that cost $5 US — if you carry Liberty, you will carry L$1,000 LD. It will not be the [current] exchange rate,” Kenneth explained.
Another vendor, Dinah Goah, said some stores adjust the conversion rate down to around L$850 but still charge as if the rate remained at L$200. “They put change for $850 and then when they’re selling $18, $5, you get you pay 1,000 for it. $25 you are $150 to it. Some places you are $100 to it,” Goah said. “They accept the U.S., but you can add money to it.”
While market women welcomed the government’s efforts to stabilize the exchange rate, they pleaded for stronger regulation of store prices so that the benefits trickle down to both sellers and customers. “I tell the government, thank you for the U.S. rates dropping,” Saah said. “But the only thing I want them to do is to control the team prices. When you try to control the team prices and the rates, it will be fine.”
Central Bank Defends Policy Moves
The complaints come even as the Central Bank of Liberia (CBL) has insisted that there is no shortage of Liberian dollars in circulation and that the recent appreciation reflects sound policy measures.
In a statement issued September 10, the Bank countered speculation that scarcity was behind the rate movements. It noted that as of September 3, commercial banks held L$1.65 billion in vault balances and more than L$2 billion in excess reserves — nearly double last year’s level. “These do not reflect Liberia’s actual Liberian dollar financial conditions, which remain stable and resilient,” the Bank said.
The CBL attributed the exchange-rate gains to monetary tightening, inflows from remittances, and structural reforms. Since April, the Bank has kept the Monetary Policy Rate at 17.25 percent and sterilized more than L$13 billion to stabilize the foreign exchange market. Remittances in the first half of 2025 reached US$425.9 million, while improved roads and agricultural output have expanded economic activity beyond Monrovia.
Inflation has also slowed sharply, falling from 13.1 percent in February to 7.4 percent in July. The Bank projects further declines, citing lower transport costs, expanded energy access, and a reduced fiscal deficit.
“There is no shortage of Liberian dollars in the financial system,” Executive Governor Henry F. Saamoi said. “The recent appreciation of the currency reflects sound policy measures, structural improvements, and improving economic fundamentals. The Central Bank remains vigilant in safeguarding exchange rate stability, ensuring liquidity, and building confidence in the economy.”
Disconnect Between Policy and the Market
Despite the Central Bank’s assurances, the lived reality in markets such as Nancy B. Doe suggests a gap between official policy gains and retail-level pricing. Traders argue that unless wholesalers and retailers adjust their pricing structures, ordinary Liberians will not feel the benefits of a stronger currency.
Kenneth, the market woman, put it simply: “When the rate drops, they’re supposed to bring the prices down so that we will not lose.”
Economists say this disconnect is common in fragile economies, where structural inefficiencies, supply chain bottlenecks, and speculative practices often blunt the impact of macroeconomic improvements. In Liberia, the dominance of imported goods and the informal nature of retail trade make enforcement especially difficult.
For women like Saah, Kenneth, and Goah, the issue is survival. They operate on thin margins, buying goods at wholesale and reselling them in small quantities to households who are themselves squeezed by economic uncertainty. Any mismatch between exchange rates and retail prices quickly eats into their profits.
“Our customers are complaining, but we can’t reduce prices because we bought at the higher rate,” Saah said. “So the market is just slow.”
That slowdown risks creating a vicious cycle. With customers buying less, traders’ incomes shrink, while wholesalers maintain their higher prices. The end result, as Goah put it, is that “they accept the U.S., but you can add money to it.”
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