It could be recalled that the Bank of Sierra Leone (BSL) on Tuesday 20 August, 2019 announced series of directives in an effort to de-dollarize the economy. However, to further keep in force their stance and pursuant to section 48 (4) of the BSL Act 2019, the Board of Directors of the Bank on 19th August 2020, approved maintaining the directives issued by the Central Bank for an additional year. The Central Bank directives issued last year, have amongst others emphasised the implementation of its new 2019 Act which criminalises quotation of prices, making and or receiving payments for transactions in the country.
Also, any foreign exchange trading outside banks registered in Sierra Leone by non-governmental organisations (NGO’s) will be seen as a violation of local foreign exchange laws. This was instituted after the BSL found out that NGO’s and their respective donors are in the practice of offshore trading of foreign exchange resources.
Furthermore, the Act also empowers the BSL to “temporarily restrict the purchase, sale, holding or transfer of foreign exchange. This has however, led the Governor to stop any individual, business entity or organization in Sierra Leone that may hold more than US$10,000 or its equivalent in any foreign currency or collection of currencies outside the banking system, except with his expressed permission or any existing statutes or international treaties to which Sierra Leone is a signatory.
The Bank however, has expressed grave concern about reports of counterfeit dollar notes being circulated within the country as recently reported by the Sierra Leone Police. According to the Press Release from the Central Bank, it affirmed that they are closely collaborating with the police in investigating the matter in order to swiftly determine the source of counterfeit notes and promptly apprehend and punish those responsible for them.
As this is part of their statutory responsibility for maintaining financial system stability, it is assuring the public that it will spare no effort in ensuring that foreign currency purchased at foreign exchange entities it authorizes and licenses are genuine. It, therefore, strongly advise the public to conduct their foreign exchange transactions in only such institutions.
The above statement from the Bank was backed by it drawing the publics’ attention to its directive entitled “prohibition of foreign currency transactions by unlicensed operators” issued in March 2020 and the additional measures issued in April 2020 and to warn the public that buying and selling foreign exchange through individuals and/or institutions not licensed by the BSL remains illegal and that violators shall be punished, upon conviction, by three years imprisonment or a fine of one hundred million Leones or both.
By Zainab Iyamide Joaque