Inflation biggest threat to Botswana in 2011 - Stanchart

This week, Standard Chartered Bank's Head of Macro-Economics and Regional Head of Research (Africa), Razia Khan, warned that with Botswana's exchange rate buffer to the rand at minimal levels, the economy could be hard-hit by inflationary pressures in South Africa.

For several months, the pula has been trading close to parity with the rand, largely due to the latter's strength and the operations of the basket of currencies that the Bank of Botswana (BoB) uses to value the local currency.