When Botswana’s authorities reaffirmed their commitment to the crawling-peg exchange rate regime in their final policy communication of 2025, the language was familiar. What was less familiar was the degree of candour about the constraints facing the system, and the willingness to recalibrate long-standing parameters in response to a far less forgiving global environment.
The year-end statement from the Ministry of Finance issued in consultation with the Bank of Botswana signals not a departure from Botswana’s orthodox macroeconomic framework, but a notable evolution within it. The introduction of asymmetric trading margins, the maintenance of a faster downward crawl of the pula, and the explicit focus on rebuilding foreign exchange buffers all point to a policy regime adapting to structural shifts at home and abroad.
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