Gaolathe defends Pula move, cautions banks
Friday, July 18, 2025 | 880 Views |
Stitch in time: Gaolathe says the recent decisions around the Pula are necessary to avoid a deeper crisis PIC MORERI SEJAKGOMO
Addressing Parliament this afternoon, Gaolathe said there was clear evidence that commercial banks were maintaining uncompetitive trading margins and engaging in unreasonable pricing practices, despite the market's foreign exchange availability.
Government recently raised the Pula’s downward rate of crawl downwards, increased banks’ trading margins for foreign currency trade with the Bank of Botswana and raised the threshold that banks can approach the BoB for currency to $5 million from $1 million. The two latter changes are designed to make it more expensive for banks to access foreign currency from the BoB and rather trade amongst themselves, in order to preserve the reserves as the diamond slump has reduced forex inflows.
That sounds like good news. But the report also warns that this may simply be because our digital economy is still young, not because we are safe. As more people shop, bank and pay online, criminals will follow.We Batswana do not need a report to tell us that danger is real. Many of us have heard of or fallen victim to KYC scams. A caller impersonates your bank or mobile money provider. They say they need to “verify” your account. They ask...