-CBL Says, Amid Reports of Rapid Increase.
Monrovia, – The Central Bank of Liberia (CBL) has reported sustained exchange rate stability, with the Liberian dollar trading at approximately L$199.6 to US$1 between March and May 2025. The bank emphasized that this performance remains within the ECOWAS ±10% macroeconomic convergence threshold. This comes amid reports that the exchange rate has increased In recent months.
The CBL noted that Liberia’s exchange rate has shown greater stability compared to some regional peers, attributing this to effective liquidity management. The announcement comes amid rising concerns over the strengthening U.S. dollar and its potential spillover effects on African economies.
To reinforce monetary stability, the CBL increased its policy rate from 17.0% to 17.25%bearlier this year—a move aimed at curbing inflation and reducing exchange rate unpredictability. The bank has also enhanced financial infrastructure through the Pan-African Payments and Settlement System (PAPSS), improving cross-border transactions and reinforcing confidence in the local currency.
Public Encouraged to Invest in CBL Bills
With over L$10 billion currently held in CBL Bills, the bank urged citizens and businesses to capitalize on higher interest yields, offering stable and attractive returns. “This is an opportunity for domestic investors to safeguard their funds while supporting national economic stability,” the CBL stated.
Meanwhile, the CBL cautioned businesses, filling stations, market vendors, and petty traders against refusing Liberian coins in transactions. “Rejecting legal tender violates Liberian law, and offenders will face penalties,” the bank warned
The CBL reaffirmed its commitment to monitoring exchange rate trends and intervening if necessary to prevent excessive fluctuations. As Liberia navigates global economic uncertainties, the bank’s policies aim to maintain price stability and public trust in the financial system.
