Liberia to print more banknotes in fight against depreciation

As the Liberian dollar continues to depreciate against other currencies, the country’s House of Representatives has voted in favour of President Ellen Johnson Sirleaf’s request to print additional banknotes.

The Liberian dollar has consistently and significantly depreciated on the global exchange market, trading as low as $67 LRD to $1 Cdn. (or about $90 LRD to $1 USD), marking a low point in Liberia’s financial history. But despite the tough times and ongoing push to print more banknotes, not all Liberian officials agree on the matter.

“The Speaker and … the Unity party have agreed and decided a need to print more money to fund their campaigns,” said Representative Edward Forh, of the opposition party Congress for Democratic Change. “We thought that by printing more money it will escalate the already depreciated Liberian dollar ….”

EXPLAINER

Because Liberia operates as a dual-currency regime – with both the U.S. and Liberian dollars serving as legal tender – even minor fluctuations in the exchange rate can have far-reaching effects. Front Page Africa explains while basic commodities are generally sold in Liberian dollars, the country’s business owners must use U.S. dollars to make purchases on the foreign market. To compensate for the loss of exchange, business owners will increase the prices of their products, leaving the already impoverished consumers to bear the brunt of the cost.

Leave a Reply

Canadian Coin News

Canada

Canadian Coin News is Canada's premier source of information about coins, notes and medals.

Although we cover the entire world of numismatics, the majority of our readers are Canadian, and we concentrate on the unique circumstances surrounding collecting in our native land.

Send Us Your Event

Running an event? Send it to us and we will display it on Canadian Coin News!

Submit Event →

Subscribe To 26 Issues For Just $59.99/year

Subscribe today to receive Canada's premier coin publication. Canadian Coin News is available in both paper and digital forms.

Subscribe Now

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.