The Central Bank of Liberia (CBL) has pushed back against growing rumors of a Liberian dollar shortage, stressing that the banking sector remains liquid and capable of meeting every demand placed on it.
In a release issued Tuesday, September 9, the Bank dismissed the speculation as baseless, explaining that commercial banks currently hold more than L$1.65 billion in cash. It noted that reserve levels are not only sufficient to cover government payrolls and private sector transactions but have also nearly doubled compared to the same period last year, an indication of improved liquidity in the system.
The Bank also pointed to the Liberian dollar’s recent rebound against the U.S. dollar as proof of policy effectiveness. Within a week, the rate shifted from L$201.08 to L$180. According to officials, this development was driven by tighter monetary measures, steady remittance inflows, and stronger overall economic activity.
Another positive sign, the CBL said, is inflation’s downward trend. After standing at 13.1% in February, it fell to 7.4% by July, reflecting greater price stability.
