Through the Department of Financial Markets, the Bank is mandated by section 6 (f), of the Central Bank of Lesotho Act No.2 2000 (the Act) to own, hold and manage its official international reserves. The primary motive of the Bank for holding reserves is to maintain the value of the Loti (LSL) and to be in a position to settle the country’s international obligations promptly.
Consistent with the motive for holding international reserves, the Bank adopts the following objectives for managing the reserves in the priority ranking shown below:
- Provide adequate liquidity to meet all external obligations of the Bank and its clients
- Maintain the international value and safety of the reserves.
- Earn reasonable returns.