|
DATE
|
ACTION
|
COMMENTS
|
|
1966–1976
|
Member of the RMA
|
No independent exchange rate or monetary policy.
|
|
August 1976
|
Pula introduced and pegged to the USD, at P1=USD1.
|
The rand is also pegged to the US dollar at the same rate; hence P1=R1.
|
|
April 1977
|
5 percent revaluation of the Pula; P1=USD1.2075=R1.05
|
Anti-inflationary measure in response to imported inflation.
|
|
January 1979
|
Introduction of a floating rand exchange rate in South Africa.
|
The rand appreciates against the US dollar as gold price rises; this led to an appreciation of the rand against the Pula.
|
|
June 1980
|
The Pula basket is introduced, consisting of the SDR and rand in euqual weights.
|
This was aimed at reducing the volatility of the Pula/rand exchange rate.
|
|
November 1980
|
5 percent revaluation of the Pula
|
Anti-inflation measure.
|
|
January 1981
|
Gold price in the world market drops.
|
There is a rapid depreciation of the rand as South Africa’s export earnings collapse.
|
|
May 1982
|
10 percent devaluation of the Pula.
|
Stabilisation measures in response to balance of payments crisis.
|
|
February 1984
|
Foreign debt standstill for South Africa and run on the rand.
|
There is a rapid depreciation of the Pula against the dollar as the rand continues to deteriorate, and similarly rapid appreciation of the pula against the rand.
|
|
July 1984
|
5 percent devaluation of Pula
|
Competitiveness measures due to the continued appreciation of the Pula against the rand.
|
|
August 1984
|
Rand weight is restored at 50 percent; after it had fallen to 37 percent by the end of July 1984.
|
To reduce the drift of the Pula from the rand.
|
|
January 1985
|
15 percent Pula devaluation
|
Competitiveness measure.
|
|
January 1986
|
New Pula basket is introduced with the rand weight increased to 65 percent.
|
This was due to the continued depreciation of the rand against the dollar, which in turn meant that Pula was appreciating against the rand.
|
|
June 1989
|
5 percent Pula revaluation
|
Anti-inflation measure.
|
|
August 1990
|
5 percent Pula devaluation
|
Competitiveness measure.
|
|
August 1991
|
5 percent Pula devaluation
|
Competitiveness measure.
|
|
June 1994
|
Technical adjustment and removal of Zimbabwe dollar from the basket.
|
To reflect changes in trade patterns, and aimed at maintaining competitiveness through real exchange rate stability
|
|
February 2004
|
7.5 percent Pula devaluation
|
Competitiveness measure.
|
|
May 2005
|
12 percent Pula devaluation
|
Competitiveness measure.
|
|
May 2005
|
Adoption of the crawling band mechanism
|
To avoid discrete adjustments of the exchange rate while maintining stability in the reasl effective exchange rate.
|
|
May 2005
|
Increase of the Bank of Botswana's trading margins from +/-0.125 percent around the centre rate to +/-0.5 percent.
|
To encourage increased inter-bank trading in the foreign exchange market.
|
|
March 2009
|
Reduce the margins from +/-0.5 percent around the centre rate to +/-0.125 percent.
|
To reduce the cost of foreign exchange transactions to customers.
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