2 January 2026
Botswana will keep the annual rate of depreciation for its pula currency at 2.76% to preserve export competitiveness and support price stability, a finance ministry official said on Wednesday.
The country reviews its exchange rate policy twice a year under a crawling band regime in which the pula is pegged to a basket that includes the South African rand.
President Duma Boko approved the maintenance of the pula’s annual rate of depreciation at 2.76%, a rate initially set in July, finance ministry official Sayed Timuno told a press conference.
“This will preserve domestic industry competitiveness in external markets and against imports while supporting price stability,” said Timuno.
The maintained depreciation rate will take effect from January 1, Timuno said, adding exchange rate policy remains a supporting tool alongside broader efforts to boost productivity, diversify the economy and strengthen long-term growth.
Botswana’s government said earlier last month it expects the economy to contract by nearly 1% this year as its key diamond sector continues to struggle.
*Reuters
Source: https://shorturl.at/bOs0N
