Last week, the Pula hit a new historic low against the US Dollar at P8.73/US$, continuing a downtrend seen since the middle of last year, while it put more distance from the three-year high it reached against the Rand early last month.On Wednesday, Bank of Botswana data revealed that the Pula has lost 10 percent against the greenback this year, 9.2 percent against the Euro and 3.4 percent against the British Pound. It has thus far gained 6.2 percent against the Rand.For the past three months, most local commercial banks have been selling the US currency at more than P9/US$ before commissions, breaching a psychological barrier in the local currency market.
The latest trends in the Pula's value against the greenback come as companies in the March business confidence survey identified fuel prices as one of potentially disconcerting factors in the next 12 months.University of Botswana senior lecturer in Public Finance, Emmanuel Botlhale said the Bank of Botswana would have to keep an eagle eye on trends in the Pula's movements.
