Milestones

The Prime Minister of the Bahamas, Honourable Philip E Davis visits the Bank of Botswana during his six-day visit to Botswana. The Bank launches, for the first time, a digital Monetary Policy Statement. Mr Cornelius Karlens Dekop appointed Governor of the Bank of Botswana following end of tenure by Mr Moses Dinekere Pelaelo. The refurbished Bank of Botswana building (Pulathebe Project) was officially opened on the day, coinciding with the Pula Day. Parliament passed the Bank of Botswana Amendment Act No.24 of 2022 into law in July 2022, and the Act came into effect on 14 February 2023 Pelaelo named Governor: Mr Moses Dinekere Pelaelo takes up position of Bank of Botswana Governor following end of tenure for Ms Linah K. Mohohlo. Major internal reoganisation sees the establishment of an additional Department and three new Divisions, as well as two new senior management level positions of General Manager. New family of banknotes, including new P200 denomination, introduced. Short-term inflation objective and intermediate target for credit growth dropped. Monetary policy to be guided by medium term inflation objective (retained at 3-6 percent) and accompanying inflation forecast. October – Governor Mohohlo named central bank governor of the year for Africa by the Emerging Markets Forum. The award was in recognition of the Bank’s development of monetary policy and commitment to medium term price stability. Botswana chosen for Steering Committee to advise on the management of Sovereign Wealth Funds (SWFs). Holdings of BoBCs restricted to commercial and merchant banks Botswana Interbank Settlement System (BISS) launched. Otherwise known as Real Time Gross Settlement, the system§ enhances the speed and security of high-value transactions. Pula devalued by 12 percent to correct overvaluation of real effective exchange rate. Crawling band mechanism in introduced to allow continuous adjustment for inflation differentials with major trading partners. Governor Mohohlo appointed to Commission For Africa by British Prime Minister, Tony Blair. Annual MPS includes for the first time a numerical inflation objective (set initially at 4 – 6 percent), together with an accompanying intermediate target for credit growth. March 1 – Electronic Clearing House is established. June 1 – Bank manages issue of inaugural Government Bond, BW001 as part of a programme support development of domestic capital markets. Moody’s Investor Services assigns Botswana investment grade sovereign credit ratings, the highest in Africa. In July, Standard and Poor’s assigns similarly high ratings. Bank of Botswana celebrates 25th Anniversary. Mrs. L. K. Mohohlo appointed Governor. December 31 – The Bank assumed responsibility for the regulation and supervision of International Financial Services Centre entities and unit trusts (enabled by the amendment of the Bank of Botswana Act and the Collective Investment Undertakings Act 1999). The Bank of Botswana Act was also amended to provide for the operation of bureau de changes. All remaining exchange controls abolished Bank of Botswana releases first annual Monetary Policy Statement. Bank of Botswana Act, 1996, came into effect, reflecting changes, inter alia, to allow the appointment of more than one Deputy Governor, and a new framework for determining the dividend from Bank profits to be paid to Government. Introduction of bureaux de change licensing and dual listing of shares on the Botswana Stock Exchange. July 1 – Mr. B. Gaolathe appointed Governor. Liquid asset ratio reduced from 20 percent to 10 percent for commercial banks and from 6 percent to 3 percent for credit institutions. Bank of Botswana Francistown Branch opened for business. November 6 – Banking Act replaced Financial Institutions Act. November 17 – Botswana acceded to IMF Article VIII status, removing all exchange controls on current account transactions, and controls on capital account further liberalised. Pula Fund established as long-term fund for investing