Pula hits record low against Dollar

Figures released by the Bank of Botswana (BoB) yesterday show that the Pula has lost 12 percent of its value against the Dollar between March last year and this year. By the end of yesterday's trade, buyers of the Dollar had to part with as much as P8.21 before traders' commissions. A year ago, the Dollar cost about P7.12 while in 2011 it was P6.70.

The Pula has been on a downward spiral against the Dollar since mid last year when the Bank of Botswana made an adjustment to the crawling exchange rate regime. This has seen the Pula firming against the Rand while losing weight against the Dollar, Pound and the Euro. The adjustment saw the weight of the Rand in the basket reduced and that of the Dollar and the other currencies increased. The rate of crawl was reduced.