By Crispina Cummings
Governor of the Central Bank of Sierra Leone has said that reactions to a recent economic measure have slowed down the implementing of the country’s dedollarization policy, meant to give preference to the leones over other foreign currencies.
Sheku Sambadeen Sesay on Tuesday told the country’s parliament that foreign accounts holders in the country had complained about bottlenecks in the withdrawal of foreign notes at commercial banks.
“That has slowed me down and made me stepped back a bit. With the zeal I had to enforce this issue, I would have been far ahead from where I am right now” he said.
He said they had to implement the policy for the good of the nation, adding that he was sorry if he did not inform everyone about the policy.
“But this policy is not new. It has always been there in the Bank of Sierra Leone Act 2011 andthe Payment System Act 2012. All what was needed was enforcement”, he said.
The bank governor disclosed that the issue of foreign currency in commercial banks had become a very serious with banks importing $30million foreign bank notes monthly, he said when this was noticed he decided to intervene, he said he call these Banks and asked to justify the need for such an amount and could not get satisfactory answers.
He asked what do Sierra Leoneans want to do with foreign currency in the domestic economy, he said the Leones is the legal tender and should be recognized as that, he said he only print leones and foreign currencies are earned so you have to work hard for it.
“The vast majority of Sierra Leoneans are not paid in dollars. They are paid in leones,yet people ask for their house rent, land purchase payments, school fees and DSTV fees to be paid in dollars”, he said, adding that they also had to intervene and prevent frequent incidences of money laundering and financing of terrorist activities.
Mr. Sesay informed MPs that after the decision to contain dollarization in the country some 80 black marketers, who changed foreign currencies, went to see him at his office to register their fear. He told them that he would help them set up foreign exchange bureaus but he learnt that the marketers worked for people and so could not come together.
He said they also met similar resistances from the commercial banks, who increased theirforeign exchange prices“to dampen his resolve”, but that was soon to subside in the face of a short in supply by the central bank of hard currencies.
“Since we took the decision to dedollarise the economy the central bank has saved $2 million in two months. I need a complementary measure from government to ensure that the procedure is followed. That is why not too long from now three different billwill be brought before parliament to be enacted. Borrowers and Lenders Act, Security Act, Collective Investment Scheme Acts”, he said.
(C) Politico 03/04/14
