Sierra Leone’s Reserve Money Depleted …BSL Reveals

By Aruna Momoh Kargbo
A Monetary Policy Statement by the Bank of Sierra Leone (BSL) revealed that the reserve money of the country has been depleted.
This was made known by the Monetary Policy Committee (MPC) of the Bank of Sierra Leone (BSL) which was Chaired by the Bank Governor Dr. Ibrahim L. Stevens which met on 23rd June 2025 and reviewed recent global and domestic macroeconomic and financial market developments and assessed the risks to inflation and growth.
“Monetary aggregates in 2025Q1 showed mixed results, with a contraction in reserve money and moderate growth in broad money (M2),” the Committee stated.
During deliberations, the Committee recommended that the Monetary Policy Rate (MPR) be reduced by 1 percentage point to 23.75 percent, which was duly approved by the BSL Board of Directors on 23rd June 2025.
The Committee maintained that the global economic outlook remains uncertain, driven by the rapid shift in trade policies, as well as ongoing geopolitical tensions.
That the domestic economy is projected to grow at 4.5 percent in 2025, up to from 4.0 percent in 2024, due to stronger performance in the mining, agriculture and services sectors and that growth expected to reach 4.7 percent in 2026 and 2027, underpinned by government initiatives to boost agricultural productivity.
That as a Committee, they acknowledge the risks to growth, especially from global supply chain disruptions, trade tensions and geopolitical instability and therefore urged the government to implement pro-growth policies to enhance the economy’s resilience to external shocks.
“Sierra Leone’s trade deficit widened in 2025Q1 due to higher import payments and lower export receipts. The gross foreign exchange reserves declined, covering 1.8 months of imports. The exchange rate remains relatively stable due to improved market sentiment and ongoing fiscal and monetary measures,” the Committee stated.
That government’s budget deficit for 2025 Q1 was higher than that recorded in 2024 Q4 and that the increase was largely due to reduced domestic revenue collection and higher domestic interest payments.
The Committee urged the government to pursue consistent domestic policy actions that Strengthens fiscal resilience through improved revenue mobilisation and prudent expenditure management.