Botswana: Finance Ministry reviews Pula basket of currencies

Botswana: The Ministry of Finance, in conjunction with the Bank of Botswana, regularly reviews the relevance of the prevailing Pula basket of currencies, and their weights, with a view to maintaining a stable and competitive real effective exchange rate of the Pula.

The Pula basket of currencies comprises the South African rand and the International Monetary Fund’s Special Drawing Rights (SDR) – a non-trading unit – consisting of the US dollar, Japanese Yen, Chinese Renminbi, Euro, and British Pound.

In 2021 and 2022, the weights or share of the basket were maintained at 45 percent South African rand and 55 percent SDR, reflecting the main external trading patterns of Botswana with its major trading partner countries.

A downward rate of crawl, or gradual depreciation, of 2.87 percent per annum was also maintained during 2022, as in 2021, based on the projected differential between Botswana’s inflation rate and that of its trading partner countries.

Following the latest review of the Pula basket of currencies undertaken in December 2022, and in accordance with Section 21 of the Bank of Botswana Act, the President of the Republic of Botswana, Dr Mokgweetsi E.K. Masisi, approved the recommendations by the Minister of Finance, Peggy O. Serame to maintain the Pula basket weights at 45 percent South African rand and 55 percent SDR for 2023, and adopt a downward rate of the crawl of 1.51 percent per annum, in view of the projected favourable inflation differentials, for Botswana, and also with a view to promoting Botswana-produced goods’ competitiveness, domestically and internationally. These changes will be effective from 1st January 2023.

Amelia Jones

Leave a Comment

Recent Posts

South Africa Culture dept. celebrates African Languages through African Languages Week

South Africa: African Languages Week was launched in July 2022 in Ouagadougou, Burkina Faso, by… Read More

3 hours ago

Acting High Commissioner of Australia hosts reception to mark Australia Day

Mauritius: On the occasion of Australia Day, celebrated annually on 26 January, the Acting High… Read More

4 hours ago

Mauritius: Participants of Behavioural Insights Training Programme receive their certificate

Mauritius: An official award of certificates ceremony was held on 26 January 2023 at the… Read More

5 hours ago

South Africa: Selfless valour, asking for nothing in return, says Lieutenant General

South Africa: Brave men and women in the military should always be honoured for their… Read More

5 hours ago

South African Air Force prestige parade at Air Force Base Swartkop

South Africa: The South African Air Force (SAAF) turned 103 years old this year, and… Read More

7 hours ago

South Africa: Blind soldiers host Symbol ceremony, share common experiences

South Africa: All Militaries in the world pride themselves on their traditions and customs. Military… Read More

7 hours ago