When he was appointed as Governor of the Bank of Sierra Leone, Professor Kelfala M. Kallon instituted several policies aimed at controlling inflation.

On Tuesday 20th August 2019, he outlined stringent measures in terms of foreign currency transaction by NGOs, businesses and private individuals which include all remittances to NGOs from overseas to be channeled through their accounts held in the various commercial banks in the country, and that, both the Bank of Sierra Leone and the Ministry of Finance will be closely monitoring those transactions.

Section 48 (3) of the Bank of Sierra Leone Act of 2019, makes it categorically clear that no individual or business entity should hold more than US$10,000 or its equivalent in any foreign currency or collect same outside the banking system. This provision continues to be violated by commercial banks on a daily basis.

In March 2020, Governor Prof. Kallon further banned the selling of foreign currencies by street vendors or dollar boys and other unlicensed operators since the Bank cannot trace their transactions. A breach of that, according to the Governor, attracts a fine of One Hundred Million Leone’s (old note).

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On the 1st of July 2022, Governor Prof. Kallon succeeded in his quest to re-denominate the Leone with the hope to stabilize the depreciating currency against the US dollar and other foreign currencies.

Despite those monetary policies, the Leone keeps depreciating on a daily basis thereby affecting the cost of essential goods and services in the country.

It is evidently clear that, the banking sector continues to undermine every effort of this government by taking the country’s economy to the street through dollar boys.

It is the responsibility of commercial banks to trade foreign currencies to business people at a regulated rate. But ironically, they have been depriving the public with such facilities by not providing dollar in the banks, but decide to sell through dollar boys on the street. We all know that the dollar source of those vendors is from the banks and nowhere else for there is no place where the dollar is manufactured overnight.

One can instantly get any amount of dollar on the street based on the price one is willing to pay just like a drug deal in a cartel. No sanity at all!

This has led to a stiff competition for the dollar among business people amidst scarcity.
Week in and week out, government is now under serious pressure from business people like the Oil Marketing Companies, and other importers to be providing foreign currency for their businesses while those banks make huge profits from the trade in dollars on the street. This is a slap on the face of the Bank Governor.
Without those interventions from government, business people will be passing the high cost of the dollar on their products which will equally affect the citizens.

While it is good news that, Governor Kallon is now requesting for a currency swap for business people to bring the Leone note to the Central Bank if they are to get the dollar for their transactions, it will be necessary for the Governor to tackle the problem root and branch by monitoring the daily foreign exchange transaction returns of those commercial banks who feel too powerful to be regulated.

All international transactions done through Western Union, Money Gram and other agents, are remitted to commercial banks in the country which makes them eligible to have and sell foreign currency to business people with ease.
Even though there is a Central Bank policy that frowns at dollar boys openly buying and selling foreign currencies on the streets, they could be seen running helter skelter after vehicles and searching for foreign currency from the public without any fear of the law.

The Bank Governor should not be seen drafting fanciful policies, but implementing them by dealing with the banking sector; the real saboteurs of the economy before the country’s economy is totally crippled.
The Time To Act Is Now!!!