The country’s ability to purchase essential goods from overseas is becoming weaker as official foreign reserves continue to fall, according to the latest World Bank Sierra Leone Economic Update.
The report shows that by August 2025, the nation’s reserves had dropped to the equivalent of 1.5 months of imports, down from US$468 million in 2023, which covered 2.6 months of imports. This level is now below the IMF’s safety benchmark of three months, raising concerns about the country’s financial stability and its ability to handle external shocks.
“Official reserves have declined consistently since 2021 and have now fallen below two months of imports,” the bank said, adding that this falls far “below the IMF benchmark of 3 months of import cover.”
The IMF benchmark of 3 months of import coverage refers to the adequacy of a country’s foreign exchange reserves to cover imports needs for at least three months if all inflows were to cease. It assesses a country’s ability to withstand external shocks and maintain its import capacity.
Economists say that shrinking reserves can make it harder for any country to import fuel, food, medicine, and other essentials. It can also put pressure on the exchange rate and increase the cost of living.
The World Bank advised that the authorities here should carefully manage foreign spending and strengthen economic reforms to protect the country from further financial stress.
