Sierra Leone lifts restriction on foreign currency transactions
Thursday December 24 2020
Sierra Leone President Julius Maada Bio. The Sierra Leone government has lifted a year-long restriction on foreign currency transaction. PHOTO | AFP
The Sierra Leone government has lifted a year-long restriction on foreign currency transaction.
The Bank of Sierra Leone (BSL) on Wednesday said that anyone can now hold as much amount of money as they have in any currency.
“All restrictions on the amount of foreign currency individuals and businesses may hold within Sierra Leone have been lifted with immediate effect,” the Bank said in a statement signed by BSL Governor, Prof Kelfala M. Kallon.
It also ordered commercial banks to reverse all restrictions in relation to the policy on their customers’ accounts.
The restriction was imposed in August 2019 at the height of a major economic crisis that was characterised by high inflation and shortage of the local currency, Leone.
It prohibited individuals or businesses to hold more than US$10,000 or its equivalent in any other foreign currency outside the banking system. It also prohibited export of same amount.
The BSL said the move then was meant to protect the Leone as a legal tender and transactions of any form in foreign currency were declared illegal.
Wednesday’s announcement didn’t mention any of that.
The restriction on foreign currency transaction had been criticised by businesspeople, especially those who engage in import and export, for its effect on their businesses. Many have blamed it, alongside high taxes, for the increase in prices of basic goods and services, which has further worsened the economic situation in the country.
The BSL’s decision also comes less than a week after a national dialogue between the government and private investors on the business environment. That engagement, hosted by the National Investment Board, provided a platform for the government to hear the concerns of investors.