Bank of Sierra Leone Explain Reason For Leones Performance
Mohamed Foday Conteh The Bank of Sierra Leone attributed the appreciation of the Leones as against other foreign currencies to election-related activities and dwindling of the demand for foreign currency.
The Central Bank, in their Monetary Policy Statement, said there was a decrement in the demand for foreign currency for importation of goods and items.
The reason was attributed to a heightened stockpiling of goods in the weeks leading to the 24 June multitier election.
There is looming doubt from the local population but the Bank’s Monetary Policy Committee (MPC) has proffered solutions including the increment of titanium ore exports. They also forecasted that a decline in the cost of goods and energy in the global market could further help boost the value of the local currency.
The Committee said trade deficit narrowed close to 160 million US Dollars in the first three months of 2023. MPC said deficit bettered 200 million US Dollars in the final three months of 2022.
The Bank expects the Leones to remain stable due to their gross foreign exchange reserve but warned that the stability could be fragile because the local currency underperformed against other world currencies.
They warned the government to reduce expenditure while increasing tax revenues and allocate resources to priority spending.
In 2022, the Leones was among the most depreciated currencies in the world with the Johns Hopkins Hanke’s Currency Watchlist placing among the top five.
Recent trends has however seen the Leones performing better than the previous year.
As far as I know, there is only one explanation on the poor performance of the Leone currently which is the heavy looting and mismanagement of our money and the resources. Disgraceful to say the least.