The Pula appreciated by 0.9% against the South African Rand and depreciated by 1.2% against the IMF Special Drawing Rights (SDR) over the one-month period to September 2020. The Pula depreciated against most of the SDR constituent currencies; it depreciated by 2.4% against the Chinese Renminbi, 2% against both the US Dollar and the Japanese Yen and 0.1% against the euro, while it appreciated by 1.5% against the British pound.
According to Botswana’s central bank, Bank of Botswana website, over the 12 months to September 2020, the nominal Pula exchange rate appreciated by 7.3% against the South African Rand and depreciated by 8.3% against the SDR. Against the SDR constituent currencies, the Pula depreciated by 11.6% against the Euro, 9.5% against the Chinese Renminbi, 9.4% against the British Pound, 7.3% against the Japanese Yen and 5.5% against the US dollar.
Botswana cuts bank rate to support economic activities
Meantime, Botswana’s central bank has cut the bank rate by 50 basis points, down from 4.25% to 3.75%, after a Monetary Policy Committee (MPC) meeting on Thursday in the capital, Gaborone. Moses Pelaelo, governor of the Bank of Botswana, said the current state of the economy and the outlook for both domestic and external economic activity provide scope for further easing monetary policy to support domestic economic activity.
“Accordingly, the MPC decided to reduce the bank rate by 50 basis points to 3.75% ,” he said.
“Commercial banks are required to make the necessary interest rate adjustments with immediate effect to reflect this policy decision,” Pelaelo said.