BoB ‘cashes in’ investments to support reserves

Under a section of the Bank of Botswana Act, the central bank is entitled to periodically move funds from the Pula Fund into the Liquidity Portfolio, which is a section of the foreign exchange reserves housing funds required for the country's short-term needs. In 2013, the BoB moved a record P21 billion from the Pula Fund in order to meet the country's spiralling import bill and also enable Botswana to meet its external obligations, which include payment of interest and principal on external debt.

The central bank’s Annual Report for 2025 shows that despite strong financial returns in international equity and bond markets, substantial withdrawals were made from the Pula Fund. The withdrawals were made to replenish the liquidity needed to finance imports.