While the Liberian dollar appears to strengthen against the U.S. dollar, concerns are growing among ordinary Liberians who feel that this improvement in the exchange rate is not translating into tangible relief in their daily lives.
This growing anxiety among the ordinary Liberians comes despite assurances from the Central Bank of Liberia (CBL) regarding the availability of Liberian dollars in the financial system -- citizens are expressing frustration over cash shortages and consistently high prices for essential goods and services.
The CBL recently reported a notable drop in inflation, many Liberians continue to face high prices for common commodities, a situation that Gbarpolu County Senator Amara Konneh says reflects complex structural and behavioral challenges in the country's markets.
During what he termed as a weekend market tour, Konneh personally observed the persistence of high prices across key commodities. "I visited several markets to see first-hand why prices have not come down despite the economic improvements we are seeing. What I found shows that multiple factors are preventing these gains from reaching ordinary Liberians," he said.
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Senator Konneh, who posted his statement on social media recently, lauded the efforts of Central Bank of Liberia (CBL) Governor Henry Saamoi and his team in stabilizing key economic indicators. Inflation has fallen from 13.1% in February 2025 to 7.4% in July 2025, while the Liberian dollar has strengthened against the U.S. dollar, signaling improvements in both price stability and currency value.
"While these figures are promising, the benefits are not yet reflected at the market level, where ordinary Liberians continue to pay high prices for essential goods," the Senator noted.
Several factors, according to Senator Konneh, are slowing the translation of macroeconomic gains into real market relief. Many vendors remain hesitant to lower prices, a phenomenon known as "price stickiness." "Prices may rise quickly, but they fall slowly," he explained. "Vendors are also concerned about whether these improvements in the exchange rate and inflation are sustainable in the long term."
The Central Bank's tight monetary policy, with a Monetary Policy Rate of 17.25%, has kept borrowing costs high for trade financing. The bank has also sterilized over L$13 billion to stabilize the foreign exchange market, even as remittance inflows reached US$425.9 million in the first half of 2025, signaling more U.S. dollars circulating in the economy.
Additionally, importers are still clearing older stock purchased at higher prices, delaying the expected drop in consumer costs for items like rice. "We have yet to see rice prices reach the US$14 per bag target announced by President Boakai because traders are still selling inventory bought at higher rates," Senator Konneh said.
Structural issues also play a role. Liberia's dependence on imported goods, coupled with seasonal transportation challenges--especially during the rainy season--continues to disrupt supply chains and push prices higher. Survey data collected by Senator Konneh's office from markets in Bomi, Cape Mount, and Gbarpolu counties confirm that these pressures are widespread.
The predominance of the informal sector, which accounts for over 80% of economic activity in Liberia, further complicates efforts to enforce pricing regulations and tax compliance. These dynamics create a market environment that resists downward price adjustments, even when macroeconomic indicators suggest relief should be possible.
Senator Konneh, a former Finance Minister, has called on his Senate colleagues--particularly members of the Banking and Currency, Ways and Means, and Commerce Committees--to engage with the Central Bank, Ministry of Commerce, and Ministry of Finance and Development Planning to examine these issues in detail. "Although the Senate is currently in recess, the urgency of this matter requires immediate attention. We must ensure that improvements in the economy translate into real benefits for consumers," he emphasized.
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He added, "This raises a critical question for policymakers: Should the government adopt more proactive measures to stabilize prices and promote reductions, or allow the market to adjust on its own? Addressing this is essential to supporting President Boakai's price reduction initiative in a way that delivers tangible relief for Liberians."
Through coordinated government action, structural reforms, and active monitoring of market dynamics, Senator Konneh expressed optimism that Liberia could ensure the benefits of recent economic improvements reach everyday citizens. "With the right strategies, we can restore confidence in our marketplace and ensure that Liberians feel the gains they deserve," he concluded.
