Banks to cede P1.5bn to BoB

The Bank of Botswana has increased the Primary Reserve Ratio (PRR) for commercial banks' pula denominated deposits from 6.5 percent to 10 percent, a move that  will see banks surrendering at least a further P1.5 billion of their deposits to the Central Bank at no interest.

The rise, which is effective July, is expected to reign in on excess liquidity in the market and reduce the amount the central bank was paying on Bank of Botswana Certificates (BoBCs).