Mmegi

Pula’s downward crawl maintained at 1.51%

Cash in hand: The Pula's value will be adjusted downwards during 2024
Cash in hand: The Pula's value will be adjusted downwards during 2024

The rate of crawl of the Pula will be maintained at a downward 1.51% for 2024, which means small reductions in the currency’s value totalling 1.51% through the year, due to expectations that local average inflation will be higher than major trading partners.

In a statement, the Finance Ministry said the weighting of the Pula against the basket of currencies would be maintained at 55 percent Special Drawing Rights currencies and 45 percent South African rand. The International Monetary Fund’s Special Drawing Rights currencies, referred to as SDR, comprise the US dollar, British pound, euro, Japanese yen and Chinese renminbi.

Since 2005, Botswana’s exchange rate policy, or the mechanism to determine the Pula’s value, has followed a crawling peg framework in which currency is fixed to a basket of the SDR and the Rand. In 2024, the weight of these currencies in the Pula basket or the proportions that each of these currencies contribute to the value of the Pula, will be maintained at 55% SDR and 45% Rand. The annual rate of crawl will entail making small, daily downward adjustments to the value of the Pula that will equal 1.51% during 2024.

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