Foreign reserves dip to four-year low

The last time foreign reserves dipped below P71 billion was in March 2014 when they were pegged at P70.1 billion. Bank of Botswana figures released this week show that the reserves fell from P72.2 billion in February due largely to movements in the transaction balances tranche, a subcategory of the reserves catering for short term foreign currency needs in the local market.

The level of the transaction balances tranche fell by 33% in March, one of its steepest declines in recent times.