There are not too many currencies that really could stand the test of time against the U.S Dollar. It is considered the world’s reserve currency. In other words, it is the currency against which much of global trade is based. With Liberia currently facing some very serious economic struggles, the local currency there is being traded away in mass for more U.S. Dollars.
One Forex trader in Liberia says that the devaluation of the currency of his country is directly related to the strength of the U.S. Dollar in the area. He says that when you go to the market, you have to either pay up in dollars or pay a higher rate in the local currency.
He personally believes that his government needs to step in and try to control the rate at which the local currency has been falling. He wants them to stabilize the rate so that the local currency does not become so devalued that it becomes basically worthless. At the moment, that is something of a serious concern. Other African nations have seen it happen to their money supply before, and Liberia does not want to join that list.
The Central Bank in the country has said that it has printed plenty of new local currency notes, but the people on the ground level say that they only see the same old currency that they have always seen in the hands of the people. With that in mind, the people of Liberia have to figure out how to just get by.
The same Central Bank is giving out only the old and often mutilated notes. These are not crisp bills that people want, but the old money that has traded hands time and time again.
The President-elect of the country made many campaign promises that he would stabilize the value of various commodities within the country. Some people who live there believe that it is possible that he could use the power that he has to try to bring about more stability for the people. There is still hope and confidence in the man. He promised these reforms within three months of taking office. If that does not happen, or does not happen on that timetable, he could be in serious political trouble.
Shop owners throughout the country are feeling the burden of the currency falling apart right now. They want someone to do something to take away that pain from them.