Botswana Bank of Botswana Amendment Act No.24 2022 Abolishes Exchange Controls

• The Bank of Botswana Amendment Act No.24 of 2022 abolished all remaining exchange controls.
• The crawling band mechanism, introduced in May 2005, allows continuous adjustment for inflation differentials with major trading partners and remains a key part of the monetary policy framework.
• The amendment came into effect on 14 February 2023 and has significant implications for the country's financial regulations.

The Parliament passed the Bank of Botswana Amendment Act No.24 of 2022 into law in July 2022, which came into effect on 14 February 2023.

The Bank of Botswana has undergone significant changes in recent years, with several key milestones marked by the launch of a digital Monetary Policy Statement and the refurbishment of its building. The Prime Minister of the Bahamas, Honourable Philip E Davis, visited the Bank during his six-day visit to Botswana. Meanwhile, Lesego Moseki is the current Governor of the Bank of Botswana, having been appointed following the resignation of Cornelius Karlens Dekop in December 2025. Governor Cornelius Karlens Dekop was appointed on October 21, 2023, following the end of tenure by Mr Moses Dinekere Pelaelo. The Parliament passed the Bank of Botswana Amendment Act No.24 of 2022 into law in July 2022, which came into effect on 14 February 2023. This amendment abolished all remaining exchange controls and, while the crawling band mechanism was introduced in May 2005, the Act is part of the legal framework under which it operates to allow continuous adjustment for inflation differentials with major trading partners.

The Bank of Botswana Amendment Act No.24 of 2022 has significant implications for the country's financial regulations. The Act abolished all remaining exchange controls, which means that lawyers and compliance officers should note that their clients' exchange control obligations may be impacted. The crawling band mechanism, introduced in May 2005, allows continuous adjustment for inflation differentials with major trading partners and remains a key part of the monetary policy framework. This change is part of the Bank's efforts to maintain price stability and promote economic growth.

The recent changes at the Bank of Botswana have far-reaching implications for the country's economy and financial regulations. The abolition of exchange controls and the continued use of the crawling band mechanism are designed to promote economic growth and maintain price stability. These changes will also impact the operations of commercial banks, merchant banks, and other financial institutions in Botswana. As such, lawyers and compliance officers should take note of these developments and advise their clients accordingly.

Lawyers and compliance officers should note that the recent amendments to the Bank of Botswana Act may impact their clients' exchange control obligations, as all remaining controls have been abolished.

Source: Original reporting via Milestones