FAQ’s

Banknotes can become accidentally torn or damaged in a number of different ways. This doesn't render them worthless. Send your damaged banknote to the Central Bank for reimbursement.

Old coins and banknotes are not for sale. Lesotho produces coins and banknotes for transactive motives only, not store of value. Old coins and banknotes are only exchanged at face value.

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Commemorative coins are different, some are for circulation while others are non circulating. Circulating commemorative coins have no intrinsic value, while some non-circulating commemorative coins do have value. Lesotho though does not produce the store of value coins. The primary purpose for producing commemorative coins in Lesotho is celebrating specific "events” only.

The dye used in ATMs is part of a security system called an Intelligent Banknote Neutralisation System (IBNS). The primary purpose of this dye is to deter theft and make stolen money unusable. These cash protection devices spray notes with a permanent dye if an ATM or Cash in Transit van is attacked, marking them as stolen — and thereby making them useless to the robbers. The notes can be stained by green or blue ink. The dye could cover the entire note, be around the edges or on any part of the note. The amount of stain is not a determinant factor because even slightly stained notes become illegal.

• Look, feel & smell - Dye-stained banknotes that look, feel or smell different than genuine banknotes.
• The staining - bluish purple or green around the edges of the notes or across one side as though the notes have been dipped in ink.
• Burning or charring - This may be as the result of the heat used in smoke systems.

Do not accept dye-stained notes from anyone, but if you happen to have it in your possession hand it in at the nearest police station or Central Bank of Lesotho. By so doing you will play your part in fighting crime. Accordingly, any information you have regarding stolen notes must be immediately reported to the local police station.

A dye-stained banknote has no value, it is classified as a counterfeit because when the ink stains the note, the original security features are damaged.

Yes you can be arrested because these notes are proceeds of crime (there is no excuse for ignorance in law).

Bleaching and/or fading of a note, the absence of the watermark or foil, or a change in the feel of the note. This may be the result of efforts to remove the dye stains using aggressive reagents. In the process of bleaching the dye stain ink may take any color.

Yes. Commercial Banks do exchange mutilated notes. You can also come to the Central Bank to change your mutilated note.

Send it back to the commercial bank or to the Central Bank of Lesotho. We encourage that you do not destroy these notes.

• FULL VALUE - A mutilated banknote with two thirds or more of the original note remaining may be paid at full value.
• HALF VALUE - A mutilated banknote with half or more but less than two thirds of the original note remaining may be paid at half value.
• NO VALUE - A mutilated banknote with less than half of the original note remaining has no value

Treasury bills are short term and have maturities from 3 to 12 months, while Government bonds have maturities of greater than 1 year. These both pay interest at different specific times. The only real difference between Treasury bills and government bonds is their maturity length.

When we change the Bank Rate, we are attempting to influence the overall level of activity in the economy in order to keep the demand for, and supply of, goods and services roughly in balance to meet the Government's inflation maintenance to a single digit percentage. If the economy is booming and there is a likelihood it could overheat, the MPC would probably tighten monetary policy by increasing the Bank Rate. The idea behind this is that commercial banks pass on these increases through the interest rates they charge for all borrowing. Regardless of whether it is borrowing for businesses or on residential homes, rates will normally increase across the board, impacting monthly loan repayments. The aim of this is to discourage spending. A higher Bank Rate will also potentially mean higher rates are offered on savings, making it more attractive to save, encouraging saving and again discouraging spending. This would impact the overall expenditure across the economy by putting a downward pressure on prices, which would gradually bring down the rate of inflation in line with our target.

The Central bank is empowered by the CBL Order as the regulator of the financial sector in Lesotho. Section 5 of the Central Bank of Lesotho Act of 2000, charges the Central Bank with the responsibility to supervise banks, and non bank financial institutions to the end of promoting a sound financial structure. In its regulatory process, the CBL issues Guidelines, Circulars and Legal Notices as regulatory tools all of which flow from provisions of the Financial Institutions Act, 2013.

There are number of regulations that the CBL has issued over the years. Most regulations are internal operations and others are bank specific. Below is a list of regulations issued by the CBL which may be of interest to the public. These legislations are available in the Government Gazette;

1. 1. The Financial Institutions Act, 2013
   Enabling legislation: It Provides for:
   2. • Licensing of banks
      • Protection of public against illegal deposit taking
      • Publishing and disclosure of information
      • Safety and soundness framework for banks
   3. Legal Notices:
   4. Exchange Control:
   5. Guideline on Banking Practice:
   This is a consumer protection banking code that regulates banking practices on issues of:
   6. The Money Laundering and Financing of Terrorism:
      • • An Act to criminalise money laundering and suppress the financing of terrorism;
        • To establish a financial intelligence unit;
        • To provide for the forfeiture of ill- gotten property and for matters incidental thereto

The Central Bank issues a relevant regulatory tool in response to the following circumstances:

• When there is an emerging risk threatening safety and soundness of the banking sector
• Where there is a new banking best practice that strengthens safety, soundness, efficiency and effectiveness of the banking system.
• Where there is a need to promote and encourage a banking practice or culture that ensures safety, soundness and customer satisfaction within the banking industry.

The effect of a regulatory instrument relates to both banks and banking customers.

• Commercial banks benefit from implementation of international and domestic best practices.
• Safety and soundness which translate to efficiency and resilience.
• Customers benefits by being able to access safe, efficient and satisfactory banking services.
• The general economy of the country is positively impacted by an efficient, stable and effective banking system.

The office of financial consumer protection exists to protect the financial consumers from unfair, deceptive or abusive practices and taking action against Financial Services Providers (FSP’s) licensed by the Central Bank that violate the financial consumer principles.

Anyone who has a bank account with any of the banks licensed by the CBL and anyone who has used or accessed any of the bank products. It is any individual or small business who makes use of banking services.

Complaints may be lodged through: email, hard copy.

The complainant should only lodge a complaint against regulated financial service providers operating in Lesotho. A complainant is advised to verify whether the financial service provider against which he or she wants to lodge a complaint is licensed or approved by the Central Bank.

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Consumers who want to lodge a complaint for resolution at CBL are given the following guidance:

• The complainant should submit a signed complaint letter describing the nature of the complaint to the Central Bank of Lesotho in- person or through this email address: registry@centralbank.org.ls or this postal address:
  The Governor
  The Central Bank of Lesotho
  Corner Moshoeshoe & Airport Roads
  P. O. Box 1184
  Maseru 100.
• The complaint letter should be accompanied by a Complaint Reference Number and complaint feedback letter from a financial service provider against which a complaint is lodged and other supportive documents such as product contracts and account statements.
• The complainant should only lodge a complaint against regulated financial service providers operating in Lesotho. A complainant is advised to verify whether the financial service provider against which he or she wants to lodge a complaint is licensed or approved by the Central Bank.
• The Complainant should only lodge a complaint after they have received an unsatisfactory response to a complaint they have submitted against a financial service provider and in cases where a financial service provider has taken too long to resolve a complaint, more than 30 days.
• The complainant should state his or her contact details such as cell phone number or email address or both through which CBL Complaints officers will contact him or her.
• The Complainant will be contacted through the shared contact details to acknowledge complaint receipt, seek further complaint details, explain complaint handling processes and how and when complaint feedback and updates will be communicated.
• The Complaint closure letter will be issued upon completion of the complaint resolution process.

The Financial Consumer Protection Act No. 7 of 2022, provides for the following fundamental consumer rights:-

 

1. 1. • • • • The consumers should be provided with the key fact statement which summarizes the major terms of the financial product or service prior to acquisition. The consumer has the responsibility to ensure understanding of the key fact statement prior to signing the related contractual obligation.
            • The consumer has the right to be provided with the material information related to the products or services in a clear, fair and legible, plain and intelligible language that can be easy to decipher. It remains the consumer’s responsibility to ensure understanding prior to acquisition.
            • The consumer has the right to receive an explanation of the contract from the financial service provider. It is the consumer responsibility to seek explanation in the event that there are unclear provisions in the contract relating to the service or product.
            • The financial consumer shall have the right to information on bundled or tied product package prior to acquisition.
            • The consumer should be adequately informed of the product/service cost or yield and the inclusive fees at any stage of the product or service lifecycle.
            • A consumer shall have the right to cancel a contract for a financial product or service within five working days after a date in which an agreement was entered into by both parties. The service provider shall disclose the cooling off right to the consumer in the key fact statement.
            • A consumer shall have the right not to be charged interest, fees or charged unless they have been disclosed and agreed in contract.

Retail Investors

Individuals

1. 1. • Investor’s identification (National ID or Valid Passport).
      • Bank account held at any of the licensed commercial banks in Lesotho.

Societies

1. 1. • Certificate of Registration.
      • Society’s Constitution.
      • Resolution by members to invest.
      • Bank account confirmation letter.
      • Certified copies of 3 Signatories’ IDs.

Institutional Investors

Companies

1. 1. • Certificate of Incorporation/Trader’s License.
      • Bank Account Confirmation Letter.
      • Certified copies of 3 Signatories’ IDs.

Contact: registry@centralbank.co.ls /22232143/2103.

This is a quarterly survey that is conducted by Central Bank of Lesotho (BOP) staff specifically meant for companies and organizations with foreign assets (receivables) and liabilities (payables) and is conducted quarterly. Data collected is used in compiling Lesotho’s Balance of payments Statement which is published in the Central Bank of Lesotho Quarterly and Annual Reports. Data and analysis are published in aggregated form for more informed decision- making. Benefits include:

1. 1. 1. Early warning of, and responses to financial and economic crises.
      2. Coordinated data requests and information sharing to reduce burden on the private sector.
      3. More effective management of foreign exchange.
      4. 4. Compilation of statistics to meet international codes and standards.