Sheku Ahmed Fantamadi Bangura, Finance Minister has revealed that Sierra Leone’s Foreign Reserves have depleted.
He made this statement while presenting the supplementary budget to Parliament on Monday 31 July 2023.
He said that the gross international reserves of the Bank of Sierra Leone have declined to US$523.80 million as at the end of June 2023, from US$610.42 million as at end of December, 2022, due to increase in payments for debt service and goods and services.
“Mr. Speaker, Honourable Members, the total value of exports for the period January to April 2023 amounted to US$419.4 million. Mineral exports amounted to $368.8 million, of which, iron ore ($262.4 million); diamonds ($36.2 million), rutile ($37.8 million) and bauxite ($8.5 million). Total import bill amounted to US$590 million during the same period, of which, fuel accounted for US$206 million; food, US$136.3 million; and machinery and transport equipment, US$101.5 million,” the minister noted.
The finance minister explained that after depreciating by nearly 20 percent during January to May 2023, the Leones temporarily gained strength in June 2023 on account of foreign exchange inflows from the election related activities and the disbursement of balance of payment support of US$21 million by the IMF in June 2023.
He further said that the depreciation of the Leones reflects the excess demand for foreign exchange relative to the supply, adding that, “the inadequate supply of foreign exchange could be attributed to low receipts of export, low official development assistance and drop in foreign direct investment (FDI) during the period.
He pointed out that the higher demand for foreign exchange could be attributed to the high cost of imports driven by higher international food and fuel prices as well as strengthening of the US dollar as the United States tightens its monetary policy stance to combat inflation.
Sheku Ahmed Fantamadi Bangura Minister of Finance 
