The Central Bank of Lesotho (CBL) is the central bank of the Kingdom of Lesotho and the note-issuing bank of Lesotho Loti. It was established in 1978 and is headquartered in Maseru, the capital of the Kingdom of Lesotho. It is a legal entity wholly owned by the national government of Lesotho, but it is independently managed in accordance with the law.

History

In 1978, the Lesotho Parliament promulgated the Lesotho Monetary Authority Act of 1978, and the government immediately began preparations for the establishment of the Lesotho Monetary Authority. On January 2, 1980, the Lesotho Monetary Authority officially came into operation and issued the Lesotho Loti as a legal tender. The Lesotho Monetary Authority continued to operate until 1982, when the Lesotho Parliament passed a new act, renaming the Lesotho Monetary Authority the Central Bank of Lesotho (CBL), which also regulated the additional functions and responsibilities of the newly established Central Bank of Lesotho. Then in August 2000, the Central Bank of Lesotho Act of 2000 was passed into force in Parliament, which gave the Central Bank of Lesotho greater autonomy. On October 20, 2010, the Central Bank of Lesotho responded to the government's urgent request to increase the sources of fiscal revenue. The first attempt was made to issue government bonds. The original plan was to issue a total of three-year and five-year bonds 125 million Maloti, and a total of 183 million Maloti were actually issued. In August 2014, the Central Bank of Lesotho announced the establishment of a new Agency Credit Authority, which will be used to establish and manage credit markets and expand credit to local and foreign investors.

Objectives and Functions

According to the Central Bank of Lesotho Act 2000, the main objective of the Central Bank of Lesotho is to achieve and maintain price stability. Therefore, the following powers are given to the Central Bank of Lesotho:

• to maintain a healthy flow of domestic funds and to promote the normal operation of the financial system.
• To formulate, adopt and implement monetary policy.
• Formulate, adopt, and implement foreign exchange policies.
• Promulgate, administer Lesotho Loti, and provide exchange services.
• Own, hold, and manage official foreign exchange reserves.
• Serve as an economic advisor to the government, as well as act as a fiscal agent to the government of Lesotho.
• Serve as a regulator of banks and other Financial Institutions Groups.
• Promote the efficient operation of payment systems.
• Promote the safe and healthy development of the financial system.
• Monitor and regulate capital markets.

Organizational Structure

The Central Bank of Lesotho is governed by a Board of Directors. The members of the Board of Directors are composed of the President, two Deputy Governors and five non-executive directors. The President is the ex officio Chairperson of the Board, and the two Deputy Governors are appointed by the King of Lesotho on the advice of the Prime Minister. The remaining members of the Board of Directors are appointed by the Minister of Finance.

List of Board Members of the Central Bank of Lesotho (2013) Job Title Remarks Chairperson Matyani R.A. Matlanyane Governor Executive Director Mahta M.P. Makhetha First Deputy Governor M.G. Makenete Second Deputy Governor Director Mangoaela P.M. Mangoaela O. Letebele Rapapa M. Rapapa M. Posholi S. Malebanye

The Bank currently has approximately 250 employees, and the departments set up under the Governor are:

• Office of the Governor
• Operations Department
• Administration Department
• Financial marekt Department
• Information and Communication Technology Department
• Research Department
• Corporate Affairs Department
• Finance Department
• Internal Audit Department
• enterprise risk management department