By: Bai Sesay
The Parliament of Sierra Leone has amended the Bank of Sierra Leone Act of 2019, passing a law that officially prohibits the use of the Old Leones currency, whose expiration date was December 31, 2023. The legislation, titled the Bank of Sierra Leone Amendment Act 2024, aims to reinforce the transition to the New Leones and address related policy matters.
The decision followed a heated parliamentary debate. Opposition MPs expressed concerns about the potential ineffectiveness of the law, arguing that permitting the Central Bank to continue accepting Old Leones for exchange might encourage their ongoing circulation. They cautioned that this loophole could undermine the prohibition and complicate enforcement.
Government MPs countered these claims, asserting that strict penalties under the new law would ensure compliance and deter further use of the old currency. They also emphasized the need for a transitional mechanism, allowing individuals holding Old Leones to exchange them at the Bank of Sierra Leone without penalties.
Under the new law, anyone found transacting in Old Leones will face a fine of at least 150,000 New Leones, a minimum jail term of three years, or both. However, holders of the Old Leones may still exchange them at the Bank of Sierra Leone at full value, with the public urged to refrain from using the old currency to avoid severe consequences.
The passage of this law marks a critical step in Sierra Leone’s monetary reform efforts, as the government seeks to enforce the exclusive use of the New Leones while providing mechanisms to recover remaining Old Leones still in circulation.
