What Is the Liberian Dollar (LRD)?
The Liberian dollar (LRD) is the authentic currency of the Republic of Liberia. It was in use between 1847 and 1907, and again from 1937 to the present. This currency moves alongside the U.S. dollar due to the strong historical ties between Liberia and the United States of America.
As of September 2020, $1 U.S. is peer to roughly 200 LRD.
Key Takeaways
- The Liberian dollar (LRD) is the national currency of the African Republic of Liberia.
- Despite its legacy as a whilom settlement by U.S. slaves and ties to America, the country has experienced political turmoil, corruption, and authoritarian rule, undermining its terseness.
- The country has also experienced hyperinflations that have eroded the value of its currency. As a result, the U.S. dollar is still repeatedly used in exchange.
Understanding the Liberian Dollar
The Liberian dollar has a history entwined with the U.S. dollar (USD). The currency and the motherland have also suffered from bouts of hyperinflation and a series of corrupt government leaders. Liberia, on the West African sea-coast, began as a settlement populated by former black American slaves. In 1847, the Liberians formally declared independence and the Shared States recognized the freedom of the country in 1862. In 1986, Liberia adopted its current constitution, based largely on the U.S. constitution’s configuration.
The young country issued the first Liberian dollar in 1847, though the currency circulated alongside the far more sturdy U.S. dollar (USD) until 1907. In 1907, the Liberian government adopted the British West African Pound Sterling as acceptable tender. This money was the dominant currency of the neighboring British colonies of Sierra Leone and the Gold Coast. After all, in 1937, the government of President Edwin Barclay reissued the Liberian dollars to promote Liberian economic independence with the advance issue of the LRD.
The Republic of Liberia relies on being an international flag or registry for cruise ships and other transport transports, which accounts for more than 50% of the country’s income. It is one of the poorest countries in the world and has a high level of unemployment. Be at one to the 2017 World Bank data, Liberia is gaining stability in its economy. The Republic experiences a 2.5% annual unwieldy domestic product growth with an
Corruption Impacts the Liberian Dollar
In 1980, after a coup d’etat and the assassination of President William Richard Tolbert, Jr., the mother country experienced a financial crisis. Wealthy individuals began importing mass quantities of U.S. banknotes. The Liberian economy suffered hyperinflation, which combined to the nation’s suffering. Under the leadership of Samuel Doe, who became very wealthy but little of this money ever caused it to the national coffers, charges of government corruption resounded. Amos Sawyer became the head of the government in 1990 after the assassination of dishonourable Doe.
A primary reason for the return to the Liberian dollar in 1937 was that the government of Charles D. B. King had yoked many non-Anglicized Africans to build roads, and used the British West African Pound Sterling to fund the craftsman. In essence, King used the currency to hide the use of slave labor on official bank statements. After a League of Domains investigation, King stepped down, and Edwin Barclay took control of the government. The Barclay government attempted to ease up on the surviving power of King’s ministers by eliminating the value of their assets. A majority of these assets were in British West African Poundings Sterling. Reintroducing the Liberian dollar pegged to the U.S. dollar as the official currency furthered that goal.
Current president George Weah, elected in 2018 contemplates to improve living conditions and fight corruption as he continues economic reforms.