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BoB releases P2bn to banks as govt cash crunch spills over

Friday, December 06, 2024 | 2030 Views |

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The Bank of Botswana is allowing local banks access to about P2 billion of their own cash held in reserve, to alleviate a liquidity crisis caused by the sharp drop in cash inflows from the banks’ biggest customers – the government and Debswana.

From December 11, the Primary Reserve Ratio or PRR, which is a proportion of deposits banks are required to keep at the BoB in order to manage liquidity or cash flows, will be reduced from a rate of 2.5% to zero.

The move will allow banks to have access to an additional P2.1 billion for lending activities, as a liquidity crunch first noted as far back as May, deepens.

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BoB releases P2bn to banks as govt cash crunch spills over

The Bank of Botswana is allowing local banks access to about P2 billion of their own cash held in reserve, to alleviate a liquidity crisis caused by the sharp drop in cash inflows from the banks’ biggest customers – the government and Debswana.

Gov't moves to close tax gaps

Chief judge promises fairness at tomorrow's Miss Botswana finale

High pressure mounts on fuel prices

We respect AFCON final decision – Babitseng

Court blow rocks BPF leadership

BPF moves to rebuild unity-Lucas

‘Reatile, Ookeditse deal was gentleman’s agreement’

Branch fires early warning shot as Portugal fuels title push

A promising step for public schools, but...