Lesotho Loti

Overview

The Loti is the official currency of the Kingdom of Lesotho. It is divided into 100 lisente. The Loti is pegged to the South African Rand on a 1:1 ratio by the Common Monetary Area, and both currencies are accepted as legal tender in Lesotho.

Economy

• Lesotho’s economy is based on manufacturing, livestock, agriculture, and the wages of laborers who work in South Africa.
• Water is Lesotho’s most important source of economic stability. It is being developed through a 30-year, multi-billion dollar project, the Lesotho Highlands Water Project (LHWP), that started in 1986.
• Lesotho has received economic assistance from many sources, including the United States, World Bank, United Kingdom, European Union, and Germany.
• Lesotho is a member of the Southern African Customs Union (SACU), whose purpose is to control tariffs on the trading of goods among the member countries. There is also a general currency unit and trade control area known as the Rand Monetary Area, which uses the South African rand.

History

• The Loti was first introduced in 1966 as a non-circulating currency.
• Lesotho issued its first coins, denominated in both Loti and lisente, in 1980. These replaced the South African Rand as legal tender.
• In 1980, Lesotho introduced the Loti as its own currency unit. One hundred lisente is equal to one Loti. The Loti is also equal with the South African Rand.
• In 1980, coins dated 1979 were issued 1, 2, 5, 10, 25 and 50 lisente denominations, as well as 1 Loti.
• In 1996, Loti coins were introduced in denominations of 2 and 5, followed by 20 lisente in 1998.