That was part of the reason it was commonly felt at the time that a central bank in such an environment would not do much beyond the issuance of a national currency. In fact, the conventional wisdom did not justify the establishment of a central bank in Botswana. Given such an inauspicious environment, the Government’s decision to establish a central bank was bold. It was considered even more bold when Botswana decided not only to issue its own national currency but also to exit the Rand Monetary Area. The shoes which the new central bank was expected to fill immediately after its establishment were indeed large. It is fitting, therefore, that we should acknowledge and celebrate the Bank’s achievements.
The process that led to the Bank’s establishment exemplified all that is good about careful planning. The origins of the Bank can be traced to August 1973 when the founding President of this Republic, appointed a Commission led by Quill Hermans, to examine options, given the dissatisfaction at the time with arrangements of being a member of the Rand Monetary Area. The Commission concluded that the aopportunity to leave the Rand Monetary Area and establish a full-fledged central bank and national currency. Such a recommendation was both well-informed but also brave and far-sighted, going against the advice of many.
