Sierra Leone’s Minister of Finance, Ahmed Fantamadi Bangura, announced strategic initiatives aimed at curbing inflation and ensuring exchange rate stability.
In a parliamentary statement, Bangura detailed the Bank of Sierra Leone’s (BSL) comprehensive plan, encompassing:
- Implementing a stringent monetary policy by elevating the monetary policy rate to reduce circulating money and combat inflation.
- Introducing BSL-owned instruments to support liquidity management for effective control of the money supply.
- Enhancing communication to clarify policy decisions and actions, fostering public understanding and support.
In addition to monetary measures, the BSL plans to stabilize exchange rates through:
- Easing restrictions on foreign exchange transactions to facilitate smoother interbank market operations.
- Enforcing a 30% repatriation requirement for exporters, aiming to bolster foreign exchange supply.
- Resuming gold purchases to fortify foreign exchange reserves and minimize exchange rate fluctuations.
- Monitoring offshore brokers to ensure donor funds align with the daily reference market rate.
- Directing all disbursements for donor-funded projects through the Bank of Sierra Leone to prevent black-market currency transactions.
The BSL’s initiatives address long-standing concerns, promising a more predictable economic landscape for businesses and individuals.
Complementary Government Measures to Address Root Causes:
Simultaneously, the government is taking steps to alleviate inflation and exchange rate challenges, including:
- Boosting domestic production to reduce reliance on imports and ease demand for foreign exchange.
- Investing in infrastructure development to enhance productivity, competitiveness, and overall economic growth.
- Fostering a favorable environment for business investment, attracting foreign capital for job creation and economic advancement.
These combined efforts are anticipated to forge a stable and prosperous future for Sierra Leone.
