The loti has been the official currency in the Kingdom of Lesotho since then. The Loti’s issuing bank is the Central Bank of Lesotho. The exchange rate of the Loti to the Rand is fixed due to the monetary union and has a ratio of 1: 1.
The ISO code of the currency is LSL, abbreviated the Loti often with an L or M. The loti is pegged to the rand, which is the key currency of the South African currency area.
One Loti equals 100 Lisente, which is the subunit of the Loti. There are notes of 5, 10, 50, 100 and 200 Maloti (plural of Loti) in circulation. There are coins to the denominations of 1, 2, 5 as well as 5, 10, 25 and 50 Lisente.
The name of the currency comes from the word mountain in the Sesotho language, which is spoken in Lesotho.
History of the currency of Lesotho
In the Kingdom of Lesotho, the loti has been the official currency since 1966. However, it has only been widespread in the country since 1980, when the first coins and notes were produced and issued.
Lesotho introduced its own currency alongside the rand in the course of the independence movement to express its majesty. The currency area includes the countries Namibia, Swaziland, as well as Lesotho and Botswana.
Since the loti always had an inflation rate of 7%, this fixed peg to the edge was inevitable in order to be able to stabilize the currency. In addition, it has strengthened economic relations with neighboring countries.
The relationship to the euro and the dollar was somewhat worsened by the monetary union. The current inflation rate in Lesotho is 6.8%.
Exchange into the currency of Lesotho
Travelers can pay in Lesotho with both Maloti and Rand. If you want to travel to other South African countries, you should ask for change in rand, as the loti is hardly accepted outside of Lesotho.
Traveler Checks are accepted in most major cities if they are issued in Rand. However, with the exception of some hotels and restaurants or western supermarkets, it could be difficult to pay by credit card.
Withdrawing cash with a credit card is no problem. However, you shouldn’t withdraw too much cash, as the re-exchange is tedious and involves bureaucratic formalities. One euro is roughly equivalent to 10 maloti, but you should find out the exact exchange rate before changing.