mmegi

US dollar strength threatens pump price recovery

Unsteady times: The recent reduction in global crude prices 
could be undone by the stronger US dollar PIC: MORERI SEJAKGOMO
Unsteady times: The recent reduction in global crude prices could be undone by the stronger US dollar PIC: MORERI SEJAKGOMO

The United States dollar’s record strength against the pula this month, is threatening to undo the improvement in local retail pump prices, which were recently decreased due to lower costs of global crude oil.

On Wednesday the dollar, the currency in which global oil is transacted, reached P13.42 according to the Bank of Botswana website, possibly an all-time high according to available records.

The peak came after weeks of strengthening during which the US dollar has frequently traded above P13 to the pula.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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