Liberian Dollar (LRD)

What Is the Liberian Dollar (LRD)?

The term Liberian dollar (LRD) alludes to the official currency of the Republic of Liberia. The currency was presented in 1847 after Liberia turned into an independent nation. It is printed and its value is kept up with by the Central Bank of Liberia, which was laid out in October 1999. This currency courses alongside the U.S. dollar due to the strong historical ties among Liberia and the United States of America. It is addressed by the symbol L$ in the foreign exchange market.

Grasping the Liberian Dollar

The Liberian dollar is Liberia's official currency and is addressed by the symbol L$. It isn't pegged to some other currency. It is kept up with by the country's central bank, which approves the printing of banknotes and the stamping of coins. Banknotes in circulation are issued in $5, $10, $20, $50, and $100 denominations. One LRD is separated into 100 pennies. Coins come in 5, 10, 25, and 50 penny denominations. The country additionally has L$1 coins in circulation.

Liberia started to involve the LRD as its official currency when it acquired independence from the Amerian Colonization Society in 1847. It was one of the principal things the government did to push the country ahead. At that point, the LRD flowed with the U.S. dollar (USD) until 1907, at which point the government adopted the British West African Pound Sterling as legal tender. The government reissued the Liberian dollars to advance Liberian economic independence with the second issue of the LRD in 1943.

The LRD was pegged to the USD until 1907, at which point they were tied to one more at parity. Albeit the two are not generally pegged, Liberians keep on utilizing the USD alongside their own currency. More modest transactions — those that amount to under $5 — are executed in the LRD. The USD, then again, is utilized to make purchases for anything over that amount. It isn't uncommon, however, to receive change in both U.S. what's more, Liberian currency from traders.

Individuals who use cash ought to ensure their U.S. banknotes are in great shape and are relatively new as it is genuinely common for shippers to dismiss worn and additionally more seasoned bills.

Special Considerations

Liberia is quite possibly of the most unfortunate country in the world and has a high level of unemployment. It positions in the 165th spot on the 2020 Index of Economic Freedom, with a high government tax burden and a low level of fiscal wellbeing. The World Bank estimated an economic contraction of 1.4% in 2019 after the country saw relative growth of 1.2% in 2018.

The country went through a financial crisis in 1980 after an overthrow and the assassination of President William Richard Tolbert, Jr. Rich people began to import mass amounts of U.S. banknotes and the Liberian economy went through a period of hyperinflation. Under the leadership of President Samuel Doe, charges of government corruption reverberated. Amos Sawyer turned into the head of the government in 1990 after Doe's assassination.

As opposed to endeavoring to deflate against the U.S. dollar in Liberia, Sawyer attempted to present the Liberian dollar as the main real currency for use. His economic policies were imperceptibly effective in returning Liberia to a bit of economic stability and fiscal solvency.

Highlights

• The Liberian dollar is the national currency of the African Republic of Liberia.
• Getting a mix of change in both Liberian and U.S isn't uncommon. dollars while executing transactions.
• The currency is printed and its value is kept up with by the Central Bank of Liberia.
• In spite of the fact that it isn't pegged to any currency, Liberians utilize the Liberian dollar alongside the U.S. dollar.