Tuesday 24 October 2017

Botswana’s foreign reserves decline

Botswana’s foreign reserves decline
(APA 10/05/17)
Finance Minister Kenneth Matambo

APA-Gaborone (Botswana) - Botswana’s level of foreign exchange reserves has slightly declined to US$740 million in June compared to US$780 million the previous month.

According to Finance Minister Kenneth Matambo, the fall in the country’s level of foreign exchange reserves was mainly due to an increase in demand for foreign exchange to pay for imported electricity.

In December 2016, foreign exchange reserves declined by 9.5 percent year-on-year from the US$840 million recorded in 2015.

The minister revealed that the Government Investment Account (GIA) accounted for US$30 million of the total reserves in June.

Matambo said although the stock of foreign reserves remains comfortably high, the country’s volatile and uncertain foreign exchange receipt requires monitoring of the reserve adequacy and implementing policies that make prudent use of revenues from non-mineral resources.

He added that the decline in the GIA has the negative implications in terms of the ability to absorb major external shocks in the economy and guard against depletion of savings for future generations.

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