“The monthly average exchange rate of the Leone to the United States Dollar continues to depreciate in all the foreign markets,” according to the Bank of Sierra Leone recent monthly economic review
On the buying front, the rate of the Commercial Banks depreciate most by 2.09 per cent at Le 3, 126.18 to $1, respectively.
The rate for the foreign exchange bureaux depreciated the least, 0.81 per cent, at Le 3,032. 45 to $1.
On the selling front, the auction rate depreciated most by 2,39 per cent at Le 3,249.14 to $1.
The parallel market also known as the gray market, registered the lowest depreciation, 1.02 per cent, at Le 3,198.89 to $1.
In between, the official rate depreciated by 1.65 per cent at Le3, 186 to $1.
The premium between the parallel and official buying rates narrowed to Le 53.84 to $1 from Le 72.38 to $ 1in March 2009.
The parallel market forms an arbitrage which forces prices down and provides name brand goods at a lower price to the consumer.