- The Sierra Leone government has announced lifting of its year-long restriction on foreign currency transactions.
- The restriction which came into effect in August 2019 was put in place to deal with the major economic crisis, high inflation and shortage of the local currency, Leone in the country.
The Sierra Leone government has announced the lifting of its year-long restriction on foreign currency transactions.
The Bank of Sierra Leone (BSL) in its statement signed by BSL Governor, Prof Kelfala M. Kallon. said that all restrictions on the limit of foreign currency, individuals and businesses can hold within Sierra Leone have been lifted with immediate effect. It has also advised commercial banks to reverse all restrictions in relation to the policy on their customers’ accounts.
The restriction which came into effect in August 2019 was put in place to deal with the major economic crisis, high inflation and shortage of the local currency, Leone in the country. It limited the holding of foreign currency by individuals and businesses up to US$10,000 or its equivalent outside the banking system and also prohibited export of the same amount. The move was meant to protect the local currency Leone as a legal tender. Transactions of any form in foreign currency were declared illegal.
The restriction on foreign currency transaction was criticised by many in business, particularly in import and export as it affected their transactions. Experts have blamed that it led to a sharp fall in trade. Added to this, high taxes, an increase in prices of basic goods and services, further worsened the economic situation in the country they alleged.
The BSL’s decision to withdraw the restrictions reportedly also came after the national dialogue between the government and private investors on the business environment hosted by the National Investment Board.
