The Liberian dollar has gained strength against the US dollar after the Central Bank of Liberia implemented a lower interest rate policy. The exchange rate has improved significantly, with the LRD appreciating from 192 LRD per USD on October 29 to 180 LRD per USD by November 27.
This 6.25% gain highlights a broader trend over the past 30 days, during which the LRD experienced a high of 0.0055 and a low of 0.0052 against the USD, culminating in a 30-day average of 0.0053. This reflects a positive change of 6.49% over the period. Even more encouraging, the LRD’s performance over the last 90 days aligns with this upward trajectory, seeing a high of 0.0055 and a low of 0.0051, with an average of 0.0052, marking an increase of 8.14%.
The CBL has taken proactive measures to bolster the economy, shifting from an exchange rate targeting system to an interest rate-based monetary policy since late 2019, the Bank said late Tuesday night. The recent cut in the monetary policy rate from 20% to 17% is viewed as pivotal in stabilizing the LRD and boosting public confidence in the domestic currency.
The bank has reassured the public that claims of a shortage of Liberian dollars and a lack of trust in the currency are unfounded.
CBL said that the exchange rate remains market-determined and that sufficient LRD is in circulation, estimated at approximately LRD 28 billion, supported by robust reserve management.
