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BoB releases P2bn to banks as govt cash crunch spills over

Friday, December 06, 2024 | 2030 Views |

Taking action: Dekop PIC: PHATSIMO KAPENG

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.

Search continues for Maun boy feared to have been taken by a crocodile

Inimba Gets the Nod for Season 2 on Mzansi Magic

Peace conference addresses growing list of social ills

GAYO Botswana and BA ISAGO University Forge Major Partnership to Advance Climate Education and Youth Leadership

Pastor accused of defiling Teen during counselling session

FIFA World Cup draw – The countdown begins!

DIS Director's daughter rape case stalls

Main Mall’s resilience, sturdiness in the face of stiff competition

Depression is real; let's take care of our mental health