Economy braces as pula review date draws near

Friday, October 31, 2025 | 220 Views |

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.

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