Latest news with #BankofBotswana
The Star
4 days ago
- Business
- The Star
Botswana implements initiatives, reforms to counter U.S. tariff impacts: bank official
GABORONE, July 25 (Xinhua) -- Botswana is implementing several initiatives and structural reforms to mitigate the potential adverse effects of U.S. tariffs on the southern African country, a Bank of Botswana official said on Friday. "Despite this challenge of U.S. tariffs on Botswana diamonds, there are several government initiatives and structural reforms, which are expected to improve the business environment and strengthen fiscal resilience," said Innocent Molalapata, director of Research and Financial Stability Department at the Bank of Botswana. During an economic media briefing, Molalapata said the initiatives include tax review and revenue maximization, enhanced public financing and debt management, as well as the Botswana Transformation Economic Program, a national blueprint to reshape the country's economy from being consumption-driven to investment-oriented and innovation-led. Meanwhile, Molalapata said Botswana's real gross domestic product is expected to contract by 0.4 percent in 2025, reflecting the prevailing unfavorable economic conditions, the weaker-than-expected economic growth, and the impacts of U.S. tariffs. Botswana faces a 37 percent tariff on exports to the United States. According to Daily News Botswana, President Duma Boko said in June that the tariff imposed on Botswana worsened the already bleak future faced by the diamond industry, and the U.S. tariff tensions had been a daunting challenge, likely to hinder efforts to grow the African economy. A World Bank report in April suggested that diamond exports account for more than 90 percent of Botswana's total exports.
Bloomberg
21-07-2025
- Business
- Bloomberg
Citi Sees Botswana Devaluing Currency Again as Diamond Prices Slump
Citigroup Inc. says Botswana is likely to devalue its currency again, as the southern African nation battles a downturn in revenues linked to the sharp collapse in global diamond prices, its main revenue source. The Bank of Botswana, earlier this month announced it will allow the pula to weaken as much as 2.76% against a basket of other currencies this year, more than the initial target of 1.51% in order to boost exports. The pula has already weakened 3.35% against the US dollar year to date, making it the fifth worst-performing currency in Africa, according to data compiled by Bloomberg.
Reuters
17-04-2025
- Business
- Reuters
Botswana holds main interest rate for fourth meeting in a row
GABORONE, April 17 (Reuters) - Botswana's central bank held its main lending rate at 1.90% on Thursday, citing balanced risks to the inflation outlook despite global economic uncertainty sparked by U.S. tariffs slapped on most countries. The Bank of Botswana maintained its monetary policy rate (BWRATE=ECI), opens new tab for the fourth meeting in a row, after a hold decision in February, December and November. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Inflation in the Southern African country edged up to 2.8% year-on-year in March (BWCPIY=ECI), opens new tab from 2.7% a month earlier. Central bank Governor Cornelius Dekop told a press conference that the bank expected inflation to remain low in the medium term, averaging 2.5% this year and 4.9% in 2026. The bank had forecast inflation averaging 3.9% in 2025 and 5.0% the following year at its last meeting in February. It prefers inflation between 3% and 6% in the medium term. U.S. President Donald Trump 's tariffs have rocked financial markets and sparked fears of a global recession. Dekop warned that U.S. "reciprocal tariffs" could be inflationary and that Botswana's inflation rate might rise on higher global commodity prices.
Reuters
20-02-2025
- Business
- Reuters
Botswana central bank holds key rate for third consecutive meeting
GABORONE, Feb 20 (Reuters) - Botswana's central bank kept its monetary policy rate (BWRATE=ECI), opens new tab unchanged for the third meeting in a row at 1.90% in a decision announced on Thursday. Inflation in the Southern African country quickened to 2.5% year on year in January (BWCPIY=ECI), opens new tab, from 1.7% a month earlier. The Bank of Botswana prefers inflation between 3% and 6% in the medium term. Botswana's economy is largely dependent on the export of diamonds, with a sharp downturn in global demand for the precious stone triggering an economic contraction last year. But the government hopes the economy will rebound this year because of an improvement in the global diamond market and a better performance in other sectors.
