By: Trokon Wrepue – trokon1992seokin@gmail.com
MONROVIA — The Central Bank of Liberia (CBL) has confirmed that the Liberian dollar has remained stable against the U.S. dollar, with the exchange rate hovering around L$199.6 per US$1 from March to May 2025.
This sustained stability places Liberia within the ECOWAS ±10 percent macroeconomic convergence threshold, marking a positive trend in the country’s financial landscape.
In a statement issued this week, the CBL highlighted that no abnormal fluctuations were observed during the period, attributing the steady exchange rate to sound liquidity management and a disciplined monetary policy stance.
As part of its broader strategy to preserve macroeconomic stability, the CBL reaffirmed its January 2025 decision to raise the monetary policy rate slightly—from 17.0% to 17.25%—to combat inflationary pressures and support a more stable price environment.
“In line with our commitment to reduce volatility in the foreign exchange market, we are actively enhancing policy communication and strengthening the country’s payment systems,” the Bank stated. This includes ongoing efforts to implement the Pan-African Payments and Settlement System (PAPSS), a regional initiative aimed at improving cross-border transactions.
The CBL also encouraged the public to take advantage of attractive returns from its financial instruments, noting that over L$10 billion in CBL Bills are currently held by domestic investors, offering improved yields.
Additionally, the Bank issued a strong warning against the rejection of Liberian coins in everyday transactions—a practice it says has been increasingly reported, particularly among filling stations, market vendors, and petty traders.
The CBL emphasized that such actions are illegal and punishable under Liberian law.
“The public is reminded that all Liberian currency, including coins, is legal tender and must be accepted in commercial transactions,” the CBL stated.
The Central Bank concluded by assuring the public of its continued vigilance in monitoring exchange rate trends and readiness to intervene against any disorderly market behavior that could threaten economic stability.
