Foreign reserves hit 23-month high
Mbongeni Mguni | Wednesday October 14, 2026 15:24
While the higher reserves could possibly be linked to hard currency loans taken on by government, published details provided by the Finance Ministry suggests the amounts were supplied in months prior to July 2026.
Bank of Botswana figures released this week indicate that at P63.2 billion, the reserves are seven percent higher than in June and 32% above July 2025. The figures also indicate that the increase in the reserves was within the transaction balances tranche, a component of the liquidity portfolio dealing with any short-term needs for foreign currency in the economy.
The transaction balances tranche rose to P16.6 billion in July from P12.7 billion in June and P7.1 billion in July 2025, indicating both higher inflows as well as possibly lower outflows in terms of foreign currency needs in the economy.
The central bank has been fighting to stem the depletion of the country’s foreign exchange reserves, a trend triggered by the downturn in diamonds and continued low import substitution in the country. Part of the BoB’s interventions have involved pushing banks to tap into their own foreign currency stockpiles, rather than approaching the official reserves, a move that saw rates spike, then stabilise in the market.