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About the Bank
   Historical Development

The Central Bank of Lesotho (CBL) was first established as the Lesotho Monetary Authority in 1978, under the Lesotho Monetary Authority Act of 1978. It started its operations on January 2nd 1980. In 1982, through the Act of Parliament, the name Lesotho Monetary Authority was changed to the Central Bank of Lesotho (CBL) and additional functions and responsibilities were prescribed to the new institution. In August 2000, the Central Bank of Lesotho Act of 2000 came into force. This new Act has conferred considerable autonomy to the Central Bank and defines a singular objective for the Bank.

   Ownership and Governance

The Central Bank of Lesotho is a statutory organisation fully owned by the Government of Lesotho.

The Central Bank enjoys a fair amount of independence in formulating and implementing monetary policy. The Governor, who is also the chairman of the Board of Directors, together with the two Deputy Governors, are appointed by His Majesty The King on the advice of the Prime Minister. The Minister of Finance appoints the other Board Members.

   Mission Statement

The Mission of the Central Bank of Lesotho is to implement appropriate monetary policy and proffer sound financial and fiscal advice, for the well-being of the country.
   Objectives of the Bank

The principal objective of the Central Bank of Lesotho, as stipulated in the Central Bank of Lesotho Act of 2000, is to achieve and maintain price stability. Other related objectives which are supportive to this mission are:
  • To foster the liquidity, solvency and proper functioning of a stable market-based financial system;
  • To formulate, adopt and execute the monetary policy of Lesotho;
  • To issue, manage and redeem the currency of Lesotho;
  • To formulate, adopt and execute the foreign exchange policy of Lesotho;
  • To license, register and supervise institutions pursuant to the Financial Institutions Act of 1999, the Money Lenders Order of 1989, and the Building Finance Institutions Act of 1976, and the Insurance Act of 1976;
  • To own, hold and manage its official international reserves;
  • To act as a banker and advisor to, and as fiscal agent of the Government of Lesotho;
  • To promote the efficient operations of the payments system;
  • To promote the safe and sound development of the financial system, and
  • To monitor and regulate the capital market.
   Organisational Structure

Board of Directors of the Central Bank of Lesotho
Dr. R.A. Matlanyane Executive Director and Chairman (Governor)
Dr. M.P. Makhetha Executive Director (Deputy Governor I)
Ms. M.G. Makenete Executive Director (Deputy Governor II)
Dr. M. Letete Non-Executive Director
Mrs. O. Letebele Non-Executive Director
Mrs. S. Mohapi Non-Executive Director
Mrs. N. Foulo Non-Executive Director
Mr. S. Malebanye  Non-Executive Director

Auditors of the Central Bank of Lesotho
Deloitte and Touche

Management of the Central Bank of Lesotho
Dr. R.A. Matlanyane Governor
Dr. M.P. Makhetha Deputy Governor I
Ms. M.G. Makenete Deputy Governor II
Mr. F. Morokole Acting Director of Operations Department
 Mr. M.Mphaka Director of Supervision Department
Mr. B. Phakoe Director of Financial Markets Department
Mrs M Morojele Acting Director of Administration Department
Mr. M. S. Mahooana Director of Information & Communication Technology Department
Mr. L. Mohapi Director of Research Department
Mr. N. Rantsane Director of Corporate Affairs ai.
Mrs. M. Mohapi Acting Director of Finance
Mr. T. Mpheteng Acting Director of Enterprise Risk Management Department
Mrs M.Mohale Director of Internal Audit Department

Divisional Heads

   Internal Audit Department

Vacant Head IT Audits
Mr. L. Ratia Acting Head - Operational and Financial Audits

Security |Services Division

Mr. B. Matobo Head - Security Services Division

Information and Communications Technology

Mr. M.Sekoati Hrad -Business Solutions Development
Mr. T. Makula Head -Infrastructure and Operations Division
Mr. M.Sehlabaka Acting Head - EA & IT Governance Diviision


Mr. F. Morokole Head -Banking Operations Division
Mr. M. Lechesa Head -National Payments System Divsion
Mr. M.J.Nts'ekhe Head -Currency Operations  Division


Mrs M. Mokebe Acting Head Human Resources
Mr. T. Malataliana General Services & Maintenance

     Financial Markets

Mrs. M. Mochebelele Head -Reserves Management Division
Mr. T. Makafane Acring Head - Reserves Management Division


Mrs. P Tau Acting Head -  Banking Supervision Division
Vacant Head -Deposit Protection
Mr. S. Nkhahle Acting Head - Financial Stability
Mr B. Noosi  Head -Non-Banks Division
Mr. M. Thamae Head - Insurance Supervision Division
Ms. L. Lephoto Head -Principal Economist -International
Mrs S. Khoabane  Acting Head- Research & Policies Analysis
Mr. M. Molise Principal Economist
Mrs. M. Hlaahla Principal Economist
Dr. M. Seleteng Modeling & Forecasting

     Corporate Affairs

Mr. T. Ntlhakana Head -Corporate Governance
Mr. T. Ramoseme Head - Legal Services
Mr. E. Moremoholo Chief Corporate Commuincation
Mrs. M. Hlomisi Acting - Chief Accountant
Mr. L. Khaka Treasury Operations

     Enterprise Risk Management

Ms I. Lets'olo Head - Project Management Office
Mrs. M. Mabote Acting Head - Enterprise Risk
Mr.T.Mpheteng  Head -Risk Management
Mrs. M. Motebang Head -Business Continuity Management


The Central Bank of Lesotho has a total staff complement of approximately 286 excluding Executive Management and operates from its Head Office in Maseru, the capital city of Lesotho. This number excludes the Governors and Heads of departments.

Download Organizational Structure here  


   Functions of Central Bank

The principal objective of the Central Bank of Lesotho is to achieve and maintain price stability. To attain this goal, the Bank performs a number of functions in accordance with the modern central banking practices. An important function of the Bank is to formulate and execute monetary policy for Lesotho. Other functions include issuing of currency, serving as a banker for the Lesotho Government and the commercial banks, acting as a custodian of the country’s foreign reserves and supervision of financial institutions. It also acts as an advisor to the government on financial issues specifically, and more generally on macro-economic issues.


1. Formulation and Execution of Monetary Policy for Lesotho    

The primary responsibility of the Central Bank of Lesotho is formulation and implementation of the country’s monetary policy. During 2004, the Monetary Policy Committee (MPC) was established, to replace the Monetary and Exchange Policy Technical Committee (MEPTC) which had been in existence since 1998. The Committee was established upon the realisation of the need to enhance accountability and transparency of the Central Bank of Lesotho in matters related to the formulation of monetary policy in Lesotho. The Committee consists of the Governors, 2 non-executive members of the Board of Directors, one of whom shall be an economist or a person of recognised standing and experience in economics, the Principal Secretary of the Ministry of Finance and Development Planning, and a representative of the business community.

The broad responsibilities of the MPC are to:

  • Review the international and domestic economic developments and their likely impact on the Central Bank of Lesotho’s ability to achieve and maintain price stability;
  • Consider and formulate appropriate monetary policy responses in order to achieve and maintain price stability in the Kingdom of Lesotho;
  • Regularly review the Central Bank of Lesotho’s monetary policy framework and adopt changes as necessary; and
  • Determine its own procedural rules and regulations to govern its operations and for the conduct of its proceedings.

2. Supervision of Financial Institutions

One of the main responsibilities of the Central Bank of Lesotho is to ensure the financial strength and stability of the nation’s banking system.

Through the Department of Supervision, and in accordance with the Financial Institutions Act of 1999, the Central Bank promotes the efficiency and effectiveness of the financial sector, ensuring the integrity of the financial system through proper licensing and supervision of financial institutions. The Bank conducts onsite examination and offsite surveillance to ensure adherence to the prudential requirements and proper functioning of the banking system.

In recognition of the need to develop and consistently review its programme for effective and efficient financial supervision, the Bank established the Financial Institutions Supervision Technical Committee (FISTC). The Committee plays an important advisory role with regard to supervisory issues. It comprises the Governor (as Chairman), Deputy Governors, Directors and senior officials of Supervision and Research Departments. The Committee meets once a week and is kept informed of all relevant supervisory activities.

3. Foreign Reserves and Exchange Control

The Central Bank executes external payments on behalf of the Government of Lesotho, and the commercial banks.

Under the Financial Markets Department, the Bank holds reserves with the objective of preserving the value of these reserves, providing liquidity to meet external payments for the Government, and earning a reasonable return on investments. The Bank is also responsible for executing the foreign exchange policy of Government.

4. Financial Services

The Central Bank provides several important services to the Government and the commercial banks. As the banker for the Government, the Bank clears cheques drawn on the Treasury’s account. It also acts as a fiscal agent for the Government through selling and redeeming of the Treasury Bills. In addition to provision of teller facilities to the Government and supplying of currency to commercial banks, the Central Bank operates a clearing house for participants in the clearing system. It further has the responsibility of ensuring an effective and efficient payment system. To this effect the Bank has had to review the National Payment System with the view to bring it in line with internationally accepted principles.

5. Issuing of Currency

The Central Bank has the sole right to issue and manage the national currency. Through the commercial banks, it puts into circulation notes and coins for the public’s need for cash. The Bank also has the responsibility to regularly sort out notes that are no longer fit for circulation; to check for counterfeits and to replace mutilated notes. It also carries out repatriation of foreign currencies and retrieval of national currency, Maloti, from abroad.

6. Advisor to the Government on Financial and General Macroeconomic Matters

The Central Bank has a Research Department that is its technical arm. The Department monitors economic developments with a view to analysing economic policies, and recommending remedial measures as well as making macroeconomic analyses and forecasts. The performance of banking and other financial institutions is also reviewed and an analysis made of domestic and regional money and capital markets, as well as international economic prospects.



   Lesotho Currency

Bank Notes - Specimens Currency

Management by the Central Bank of Lesotho includes, inter alia, handling of bulk deposits and withdrawals by commercial banks, sorting of maloti notes and coins and the systematic issue of new and re-usable currency. It also includes acceptance and onward repatriation of South African rand currency to South African Reserve Bank (Bloemfontein Branch) in accordance with the bilateral agreement between Lesotho and South Africa. Two Hundred Maloti - Head Hundred Maloti - Head Hundredd Maloti - Tail Ten Maloti - Head Ten Maloti - Tail Commemorative Coins Commemorative Coins are special coins issued by the bank to commemorate special events from time to time. So far, the following coins have been minted: In 1985 His Majesty’s King Moshoeshoe II celebrated a Silver jubilee of his accession to the throne of Lesotho. The Papal Visit to Lesotho in September, 1988 The Coronation of King Letsie III in 1997 The 25th anniversary (silver jubilee) of the Central Bank of Lesotho. It was issued on January 28, 2005.

   Public Awareness

Public Awareness
   Risk Management

Risk Management
   Social Responsibility

Social Responsibility
   International Memberships


Lesotho continues to demonstrate a strong commitment to economic cooperation through its membership and participation in the activities of regional economic and international organizations. These include the Common Monetary Area (CMA), Southern African Customs Union (SACU), Southern African Development Community (SADC), the African Rural and Agricultural Credit Association (AFRACA), the All African Central Banks (AACB), International Monetary Fund (IMF) and the World Bank (WB).


Common Monetary Area [CMA]    

Lesotho’s fiscal and monetary policies operate within the context of the membership of the Common Monetary Area (CMA). This includes Namibia, Swaziland and South Africa . In terms of the CMA Agreement, the national currency, the loti – is fixed at par to the South African rand. The latter is also legal tender and co-circulates with the loti in Lesotho.

In spite of several benefits that Lesotho derives out of the CMA arrangement – such as easy availability of rands to Basotho, the elimination of exchange rate risk between Lesotho and South Africa, and, more importantly, macroeconomic stability – the Agreement poses some policy challenges for Lesotho. These challenges hinge largely upon synchronization of fiscal and monetary policies.

South African Development Community [SADC]

SADC comprises Angola, Democratic Republic of Congo, Malawi, Mauritius, Mozambique, Seychelles, Tanzania, Zambia, Zimbabwe and SACU countries (Botswana, Namibia, Swaziland, South Africa and Lesotho). In the SADC, two memoranda of understanding (MoUs) were signed. The objective of the MoU on macroeconomic convergence is to establish a macro-economic stability coordination framework in the SADC region.

The MoU on cooperation in taxation and related matters seeks to harmonise tax regimes, promote the application and treatment of tax incentives, direct taxes and treaties to avoid double taxation, indirect taxation, develop a dispute settlement mechanism and foster cooperation on capacity building in the area of taxation.

Work is ongoing to finalise MoU on investment. One of the sub-structures of the SADC Finance and Investment sector that was involved in developing the MoUs was the Committee of Central Bank Governors (CCBG). At the end of 2003, completed MoUs were related to cooperation and coordination in the areas of; payments, settlements and clearing systems; information and communication technology; and exchange control. These MoUs have also been endorsed by the SADC. However, they await standardization by the SADC Ministers responsible for Finance and Investment, Legal sector and adoption by the SADC Council of Ministers for eventual signing and implementation by the CCBG.

For more information visit the website: www.sadc.int and www.sadcbankers.org

Southern African Customs Union [SACU]    

SACU comprises all CMA countries (Namibia, Swaziland, South Africa and Lesotho) and Botswana. SACU countries have continued their economic reform programmes, where trade and investment liberalization have played key roles. The 2002 SACU Agreement provides for:
(i) A more democratic institutional structure
(ii) Dispute settlement mechanism
(iii) Requirement to have common policies on industrial development, agriculture, competition and unfair trade practices
(iv) New system regarding the common revenue pool and sharing formula.

It is envisaged that, once in force, the ratified Agreement, combined with multilateral trade liberalisation and outward-orientation, will help SACU countries to foster their integration into the world economy. SACU members acknowledge that in order to promote long-term economic growth, they need to move towards sources of income other than the SACU revenue pool.

The African Rural and Agricultural Credit Association (AFRACA)    

AFRACA is an association whose mandate is to promote rural development by fostering cooperation among African governments and financial institutions in agricultural credit and banking aimed at rural and financial development. The association is involved in designing, organizing and coordinating training programmes for members. In 2002, the AFRACA Secretary General and the Chairman of the Southern African Sub-region visited the CBL, and during their visit, pertinent issues were discussed. Among pertinent issues discussed during the visits were the role of commercial banks in rural finance – a study that was to be carried out in the sub-region, some planned workshops and CBL’s requirements from AFRACA.

Through AFRACA, certain achievements have been possible with major strides including appointment of Central Bank of Lesotho to the status of Deputy Chair of AFRACA Executive Committee. As per practice, the institution that has been elected to this seat is supposed to host the next meeting of the Executive Committee. In line with this practice, CBL through Supervision Department facilitated the hosting of AFRACA Executive Committee meeting, which was held in Maseru in June 2003. Pertinent issues discussed covered the following:

- The need to revive the Central Africa Sub-Region.
- AFRACA’s Diplomatic recognition by the Kenyan Government.
- New membership fees.
- Review of AFRACA constitution.
- AFRACA Strategic Plan for 2003/2008.
- Themes for the Sub-Regional workshops 2003/2004.
- AFRACA audited accounts 2002.

The CBL through Supervision Department- Rural Finance Division participated in microfinance seminars in Sri-Lanka and Ethiopia, and in an exposure programme at the Bank of Ghana. The attachment of the Bank of Ghana provided appreciation of rural banking in the context of Ghana. The CBL through such exposure programmes, is armed with the tools necessary for rural financial intermediation.

More information on CBL-Rural finance visit website link: www.centralbank/projects/rural or AFRACA’s website: www.afraca.org

Other major international partners include:

AACB All African Central Banks (AACB)
International Monetary Fund (IMF) – visit www.imf.org
World Bank (WB) – visit www.worldbank.org



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