The Central Bank of Liberia (CBL) says the recent depreciation of the Liberian dollar is primarily driven by increased demand for United States dollars by importers restocking goods sold during the Christmas and New Year festive period.
Speaking on behalf of the CBL on Tuesday, December 16, 2026, Information Minister Jerolimick Piah said the current pressure on the local currency is seasonal and does not reflect any structural weakness in the management of the foreign exchange market.
According to Piah, the surge in demand for foreign currency is consistent with historical trends observed after December each year, when businesses seek U.S. dollars to replenish inventories, placing temporary pressure on the exchange rate.
"The current exchange rate fluctuations are temporary and are primarily linked to post-festive seasonal demand for U.S. dollars by economic agents in the foreign exchange market to restock goods sold during the festive period," he said.
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Piah further assured the public that the current rate of depreciation of the Liberian dollar is expected to slow in the coming weeks. He disclosed that as of the end of November 2024, Liberian dollars in circulation accounted for less than four percent of the country's nominal Gross Domestic Product (GDP), less than 15 percent of the total money supply, and about 10 percent of annual import payments.
He also noted that net U.S. dollar remittance inflows into the domestic economy stood at an estimated US$661.8 million as of November 2024, nearly four times the volume of Liberian dollar currency currently in circulation.
"This implies that the volume of Liberian dollars in circulation is proportionately too low to pose any permanent risk of exchange rate instability in the foreign exchange market," Piah added.
In light of the situation, the CBL encouraged members of the public holding large volumes of Liberian dollars not to panic but instead consider investing in CBL Bills at a competitive, effective annual interest rate of 17 percent, one of the highest Liberian dollar investment returns in the domestic economy.
Reading from a prepared statement, Piah said the CBL remains committed to working with fiscal authorities and other stakeholders to ensure a stable macroeconomic environment. He added that the Bank will continue to monitor foreign exchange market conditions and stands ready to implement additional proactive monetary policy measures if necessary.
Meanwhile, the public was urged to avoid speculative behavior in the foreign exchange market and to take advantage of CBL Bills as a secure investment option that also supports macroeconomic stability.
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