Exchange Rate Falls

Source: The New Dawn

-But consumers decry high prices

Despite the United States Dollar recently depreciating against the Liberian Dollar, consumers here lament price increases in the market.

By Naneka A. Hoffman

Monrovia, Liberia; September 16, 2025 - The Central Bank of Liberia (CBL) has assured the public that there is no shortage of Liberian dollars in the economy and that all commercial banks are required to honor customers' withdrawals on demand.

In a release dated September 13, the Bank explained that daily foreign-exchange rates are "indicative," based on surveys of the Monrovia market and other cities, and are not set by the CBL. Despite this reassurance, many Liberians claim that the recent decline in the U.S. dollar exchange rate has not resulted in lower prices.

Speaking in an interview with some Liberians in Monrovia on Monday, September 15, 2025, Barclay Weah said, "We all wanted the U.S. rate to come down, and we applaud the government for that. However, now when we buy, marketers tell us to add 200 or 400 Liberian dollars before we can obtain the same goods. Something I used to buy for $ 20 U.S. dollars now costs more in Liberian dollars, even though the exchange rate has dropped. That's not transparent."

Weah urged the Ministry of Commerce to enforce price regulations.

Also speaking, Albert Critical Moore, Sr., argued that simply holding down the exchange rate cannot curb inflation.

"The government thinks the only way to fight inflation is by holding onto the Liberty (Liberian dollar). Inflation policy is about putting the economic team around the table and finding solutions," he said.

Moses A. Sandi recounted paying more Liberian dollars for goods priced in U.S. dollars despite the stronger local currency.

"The rate dropped, but prices are still the same. What's the reason for dropping the rate if you can't control prices?" he asked.

Biko Biko said the mismatch hurts both sellers and buyers.

"Whenever the U.S. rate drops, we expect commodity prices to drop too, but they stay high."

He said the government needs to work on both the rate and the market prices.

Alfred Momo Kromah said the presidential orders to reduce commodity prices, such as rice, are ineffective without market enforcement.

Another aggrieved resident, Prince George, said most salaries are disbursed in Liberian dollars, but "When we go buy goods, we must add extra money even after the rate fell."

He explains that the Central Bank has clarified that there's no shortage of Liberian dollars, so the Ministry of Commerce needs to act.

While the Central Bank insists liquidity is stable, many citizens believe that without stronger market oversight, a lower exchange rate offers little relief at the checkout counter.