Mmegi

Economy braces as pula review date draws near

Decisions due: The Ministry of Finance and BoB are working on the pula exchange rate policy review
Decisions due: The Ministry of Finance and BoB are working on the pula exchange rate policy review

Technocrats at the Ministry of Finance and the Bank of Botswana are crunching numbers and measuring impact ahead of the December review of the pula exchange rate policy, as some experts advise that the local currency is still overvalued.

The last review, done on July 10, resulted in a faster depreciation of the pula, whilst changes to the central bank’s trading margins for foreign currency with banks kicked off economy-wide price hikes.

Authorities said the measures were critically needed to arrest the decline in the foreign exchange reserves, which defend the value of the pula, and also support export competitiveness to boost forex inflows.

Editor's Comment
Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

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