By Thomas Dixon in Freetown
232News
Kelfala Kallon, bank governor of Sierra Leone has rescinded on some of the monetary policies he put in place in the build up to the introduction of the re-denomination of Sierra Leone’s currency.
The new currency which among other things was meant to stabilize the economy has further proved to be very weak as against the United States Dollar.
The New Leone currency that was introduced is currently on a downward depreciation as against the dollar.
Just last Thursday 15 September the Bank Governor revealed in a public notice that the old Leone which should have officially ceased to exist at the end of September has been extended to the 31 March 2023.
“Effective 1st April, 2023, the Old Leone shall cease to be legal tender. The Bank, it designated agents and all commercial banks and other financial institutions shall continue to exchange the Old Leone for the New Leone until 31 March 2023,” he stated.
That between 1st April and 15th April 2023, the old Leone shall be exchanged for the New Leone at the Bank and that after 15th April, the Bank shall not exchange the Old Leone for the new Leone
Surprisingly on Friday 16th April, the Bank of Sierra Leone rescinded on another policy on limitation of withdrawal of cash in the Bank which has affected several business in the past months.
“All cumulative weekly over the counter limits for cash withdrawals per bank account from all commercial banks and other licensed deposit-taking institutions are hereby removed with immediate effect,” the release revealed.
Many people have questioned the practical competence of the Bank Governor as they believed that he is jam-packed with outdated theories that can’t work in an economy that is 80% informal.
