The country’s foreign exchange reserves reached about P56 billion in March – the highest level since October 2024 – signalling an improvement in inflows as well as interventions such as the exchange rate policy changes. The reserves were measured at about P46.4 billion in March 2024.
Generally, upward movements in the foreign reserves are influenced by greater inflows such as diamond earnings, policy changes as well as the onboarding of hard currency denominated debt.
Preliminary data shared by the Bank of Botswana (BoB) indicates that the foreign reserves improved from P55.3 billion in February to P56 billion in March, again signalling a general upward trend in the key numbers. Central bank figures show that in March, the Pula Fund was measured at P29.1 billion, compared to P24.5 billion in the same month a year ago.
The Pula Fund is a savings instrument established to act as a fiscal buffer and nest egg for future generations, The key Government Investment Account (GIA) reached P9.1 billion in March, from about P7 billion in March 2025. The GIA, informally known as government’s savings, represents government’s share of the Pula Fund.
Government often dips into the GIA to fund various needs such as the 2016 Economic Stimulus Plan, COVID-19, and budget shortfalls. Frequent withdrawals from the Pula Fund are also made to support the country’s import bill. The GIA fluctuates constantly as it depends on the surplus or deficit position of the Government Remittances Account (GRA), which is the government’s main account where all its revenues are deposited and which feeds all other accounts.
According to Finance ministry technocrats, the GRA must maintain a certain balance and when it drops below that figure, withdrawals are made from the GIA. In good years, the GRA carries a surplus that is taken over to the GIA, but due to the diamond downturn and the fact that other revenue sources are weaker, the GIA has been increasingly feeding the GRA.
