Due to the link between Botswana's economy to South Africa's, when the rand weakens against the dollar, the pula also follows suit, although not by the same margins. The pula simultaneously gains against the rand.Over the past two weeks, the rand fell to as low as R12 to the dollar, but by Wednesday this week, it had managed to gain some ground, trading at R9.58 against the dollar. Analysts believe it will continue on that path for some time as sentiment towards high-risk assets improves.Consequently, the pula has begun to gain against the dollar as the see-saw in the financial markets continues.During the month of October when the rand was at the lowest against the dollar, the pula depreciated against most major trading currencies except the rand against which it appreciated by 6.8 percent. The largest depreciation was 21 percent and 13.9 percent against the Japanese Yen and US Dollar respectively.
Statistics from the Bank of Botswana (BoB) show that on an annual basis, the pula fell against all major trading currencies except the rand against which it appreciated by 13.7 percent. The annual largest depreciation was 37.1 percent against the Japanese Yen. On the other hand, the exchange between the rand and the pula, which had appreciated to as much as 75thebe per rand, has begun to weaken, ending Wednesday trading at 80thebe per rand.
