Liberia is a country in West Africa. Its capital city Monrovia is home to the Liberia National Museum, which holds an exhibit of the country's national history and culture. The Liberian dollar (LRD) is the official currency of the Republic of Liberia. It was introduced in 1847 after Liberia's independence. The Central Bank of Liberia, established in October 1999, prints and maintains the value of the LRD. This currency circulates alongside the U.S. dollar since the United States of America and Liberia have strong historical ties with each other. In the foreign exchange market, the Liberian dollar is represented by the L$ symbol.
The Liberian dollar is not pegged to any other currency. Liberia's Central Bank maintains and authorizes the minting of coins and the printing of banknotes. Banknotes were circulated in issues of $5, $10, $20, $50, and $100 denominations. One Liberian dollar is divided into 100 cents. Coins are in denominations of 5, 10, 25, and 50 cents. Liberia also has L$1 coins in circulation. The country began to use the Liberian dollar as its official currency when it obtained its independence in 1847 from the Amerian Colonization Society. It was one of the first actions of the government to push the country forward.
Liberia is one of the poorest nations in the world and has a high unemployment level. It ranks 165th on the 2020 Index of Economic Freedom, with a low level of fiscal health and a high government tax burden. The World Bank estimated a 1.4% economic contraction in 2019 after the country had a relative growth of 1.2% in 2018.
In 1980, the country went through a financial crisis after the assassination of President William Richard Tolbert, Jr. and a coup d'etat. As a result, wealthy individuals began to import bulk quantities of U.S. banknotes and the Liberian economy went through a stage of hyperinflation. In addition, charges of government corruption resounded under the leadership of President Samuel Doe. In 1990, Amos Sawyer became the head of the government after the assassination of Doe.
Instead of deflating against the U.S. dollar in Liberia, Sawyer attempted to introduce the Liberian dollar as the single legitimate currency for use. Sawyer's economic policies were relatively successful in restoring Liberia to a modicum of fiscal solvency and economic stability.