Liberia: Central Bank Blames High Exchange Rate On Christmas

23 January 2025
The New Dawn (Monrovia)
By Kruah Thompson

The Central Bank of Liberia (CBL) has attributed the recent rise in the exchange rate to the high demand for foreign currency during the Christmas season.

According to CBL, this surge was driven by increased spending on imports for holiday-related purchases during the festive season. "Any time Christmas passes, we will experience an increased exchange rate because of these economic factors" " the CBL says.

"What is happening is normal and temporary. The rate will adjust. This is happening because people spent more money during Christmas to buy goods in U.S. dollars, which increases the demand for foreign currency, putting pressure on the exchange rate," Information Minister Jerolinmek Piah stated.

Speaking on behalf of the Central Bank during the Ministry of Information, Cultural Affairs, and Tourism's (MICAT) regular press briefing here Tuesday, January 21, 2025, Jerolinmek Mathew Piah revealed that as of November 2024, the amount of Liberian dollars in circulation accounted for less than four percent of the country's nominal GDP and less than 15 percent of the total money supply.

He also said that the net U.S. dollar remittance for goods at the end of November 2024 was estimated at $661.8 million.

According to him, the low proportion of Liberian dollars in circulation limits its influence on the overall economy and exchange rate fluctuations.

However, he assured the public that the government is working to address these challenges and that the rate will readjust.

Piah also encourages citizens to invest in the Central Bank's bills, which he claims offer an attractive 17 percent interest rate.

"The CBL remains committed to collaborating with the community and other stakeholders to closely monitor the foreign exchange market and ensure stable macroeconomic development', the minister said.

Meanwhile, the government urges the public to desist from speculative behavior in the foreign exchange market, so the economy can maintain its stability.

The CBL reassures that these exchange rate spikes are recurring and steps are being taken to address their long-term impact. Editing by Jonathan Browne

Read the original article on New Dawn.

Tagged:
Copyright © 2025 The New Dawn. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.