Botswana: Bank of Botswana Addresses Liquidity Challenges

Gaborone — Bank of Botswana has introduced measures to respond to low excess liquidity challenges.

One of the measures include reducing the primary reserve requirement to zero, extending the maturity of repurchase agreements (repo) to 30 days and adjusting foreign currency trading margins.

“These interventions have helped to stabilise liquidity conditions, evidenced by increased uptake of longer-term repos, improved interbank activity and a pause in prime lending rate hikes,” the Bank notes.

…