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.
