The Liberian dollar has shown signs of resilience against the United States dollar, adding to its strength relative to other currencies within the West African Monetary Zone.
As of December 2024, the official exchange rate closed at L$184.94 to US$1.00, marking a 3.0 percent depreciation from the previous month’s figure of L$179.19. Despite this monthly fluctuation, the average exchange rate for December revealed a more optimistic trend, appreciating by 1.3 percent to L$181.43 from L$183.81 in November, the Central Bank of Liberia said in a report published late March.
This overall improvement in the average exchange rate is primarily attributed to the Central Bank’s stringent monetary policy and the influx of foreign exchange inflows, which have bolstered market confidence.
The report noted that among the six currencies of the WAMZ, the Liberian dollar distinguished itself as one of the strongest performers for the period. Comparatively, it registered a 1.3 percent appreciation against the US dollar, outperforming several regional counterparts.
The Nigerian naira and the Ghana cedi also showed strong performances, appreciating by 7.2 percent and 8.3 percent respectively. In contrast, the Gambia dalasi, Guinea franc, and Sierra Leonean Leone experienced slight depreciations of 0.3 percent, 0.4 percent, and 0.4 percent respectively.
The CBL’s firm monetary policies aimed at stabilizing the domestic currency have proven effective, showcasing Liberia’s potential for economic resilience amid global fluctuations. Analysts view the strengthening of the Liberian dollar as a positive indicator of the country’s ongoing economic recovery and its strategic positioning within the West African Monetary Zone.
