Central Bank of Lesotho

The Central Bank of Lesotho is the nation’s monetary authority responsible for formulating and implementing monetary policy. It holds the exclusive right to issue the Lesotho loti, the country’s legal tender. The bank supervises and regulates commercial banks and other financial institutions operating within Lesotho. It manages the country’s foreign exchange reserves to support external stability and facilitate international transactions. The institution oversees the national payment and settlement systems to ensure their safety and efficiency. Through these functions it serves the broader Lesotho economy, including businesses, households and the government.

As the sole central bank, it acts as the lender of last resort to provide liquidity to solvent financial institutions under stress. The bank’s regulatory role includes setting prudential standards, conducting inspections and enforcing compliance with banking laws. It contributes to financial stability by monitoring systemic risks and coordinating crisis response measures. The institution’s monetary policy framework aims to maintain price stability while supporting sustainable economic growth. In December 2023 the bank experienced a cybersecurity incident that prompted an immediate investigation and temporary suspension of certain systems to prevent further infiltration. Despite the incident, the bank reported no financial losses and worked to restore normal operations while assuring the public of the safety of financial holdings.