Tuesday, January 22, 2019 | 02:32 AM

Major developments since the establishment of the Bank of Botswana

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1975 July 1 – Bank of Botswana established under the Bank of Botswana Act, 1975. Mr. H. C. L Hermans appointed first Governor.
1976 August 23 – Exchange Control Regulations enacted and the new currency, Pula, introduced, replacing the South African rand.
1977 April 1 – Government banking accounts transferred from Standard Bank of Botswana (now Standard Chartered Bank Botswana) to Bank of Botswana.

April 18 – Clearing House set up within Bank of Botswana for bank cheques.
1978 January 1 – Mr B.C. Leavitt appointed Governor.
1980 November – Pula taken off US dollar peg. Pula Basket, comprising SDR and South African rand, introduced.

Mr. F. G. Mogae appointed Governor
1982 January 1 – Mr. C. N. Kikonyogo appointed Governor

August – Bank of Credit and Commerce Botswana (BCCB) licensed as the third commercial bank in Botswana, thus ending the long-standing duopoly of two British bank, Barclays and Standard Chartered.

During the year, for the first (and so far only) time, the Bank of Botswana imposed a temporary ceiling on credit growth as part of a package of measures to address balance of payments and fiscal problems arising from the downturn in diamond exports due to a global economic slowdown.
1987 July 1 – Mr. H. C. L. Hermans re-appointed Governor
1988 Change in monetary policy focus. Removal of restrictions on guide to bank charges. Measures introduced to facilitate a shift to longer term interest bearing deposit facilities and to induce market determined interest rates.
1989 A major review of financial development policies was completed with the assistance of the World Bank. The document “Financial Policies for Diversified Growth” provided the basis for extensive policy reforms from 1989 onwards. The Bank began raising interest rates to achieve levels that were positive in real terms.
1991 May 17 – Bank of Botswana Certificates (BoBCs) introduced, signifying a major change to monetary policy implementation through market forces rather than by direct control. Call account facility of the Bank of Botswana was abolished

July 8 – Bank of Botswana take over the management of Bank and Credit and Commerce Botswana (BCCB) after its parent, Bank of Credit and Commerce International (BCCI), was placed in liquidation by the Bank of England. The operations of BCCB subsequently taken over by First National Bank Botswana.
1993 New ‘Governor’s Block’ is formally opened by former Governor F. G. Mogae, the then Minister of Finance and Development Planning and Vice President of Botswana.
1994 November – Pula Fund established as long-term fund for investing foreign exchange reserves.
1995 July 10 – 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.
1996 August – Liquid asset ratio reduced from 20 percent to 10 percent for commercial banks and from 6 percent to 3 percent for credit institutions.
1997 January 1 – 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.
1998 February – Bank of Botswana releases first annual Monetary Policy Statement.
1999 October 21 – 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.
1999 February 8 – All remaining exchange controls abolished
2000 July 1 - Bank of Botswana celebrates 25th Anniversary.
2001 March 12 – 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.
2002 February 20 – 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.
2004 April 30 – Governor Mohohlo appointed to Commission For Africa by British Prime Minister, Tony Blair.
2005 May 31 – 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.
2006 March – 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.
2008 February 25 – 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).
2009 August 21 – New family of banknotes, including new P200 denomination, introduced.
2010 July 1 - 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.
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