Mmegi

Diamond downturn nibbles away at forex reserves

Friday, January 10, 2025 | 990 Views |

Heart of the economy: All eyes are on whether diamond sales can recover this year, which would stabilise various sectors of the economy as well as narrow the budget deficit and other related metrics

Besides tightening the budget, the diamond downturn is squeezing foreign exchange reserves and could soon result in higher charges for businesses and individuals seeking hard currencies. The Bank of Botswana has asked banks to dig more into their own sources and reduce their reliance on the official reserves, writes MBONGENI MGUNI

Acting governor of the Bank of Botswana (BoB), Kealeboga Masalila, explains that while foreign currency exchange seems like a matter for major firms and entities, many of us interact with it in one way or the other, especially in this modern, Internet-connected world.

“To support you as you subscribe to Netflix and as with firms, oil importing companies and others, the banks come to the BoB and say ‘my clients need foreign currency’ and we are obliged to provide that.

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