BoB allays fears of looming liquidity crunch

Dismissive: Wright
Dismissive: Wright

The Bank of Botswana (BoB)has moved to dispel fears of a looming liquidity crunch saying the current tight position in the market was a seasonal phenomenon resulting from heavy cash outflows set against lower inflows at this time of the year.

For the first time in 20 months the banking system was recently short, a development analysts feared marked the return of the 2014 liquidity crunch that forced the central bank to intervene and release P2.3 billion into the system to boost liquidity.

Director of  financial markets at the central bank, Matthew Wright told BusinessWeek that the reduced liquidity, which was first noticed at the end of November last year, was a temporary occurrence at this time of the year as foreign companies repatriate profits while government does not sell any diamonds in December.

Editor's Comment
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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