Depreciation

Botswana's Currency Strategy: Navigating Economic Challenges with Strategic Adjustments In a significant policy shift, Botswana has decided to allow its local currency, the pula, to depreciate by 2.76% over the next year. This move is undeniably more aggressive than earlier expectations, aiming to address the mounting economic pressures the country faces. As countries often grapple with currency fluctuations, this measure reflects a blend of strategy and necessity in the world of economics. The decision emerges during a…

Lawmakers are pressing Finance Minister Mthuli Ncube to deliver a comprehensive statement addressing the recent plunge in value of Zimbabwe's newly unveiled gold-backed currency. Dubbed the ZiG, or Zimbabwe Gold, this currency made its debut in April. However, it has already suffered a staggering decline of more than 40%. This drop stems from mounting market pressure urging the Reserve Bank of Zimbabwe to establish a more realistic and pragmatic exchange rate. Throughout the last several years, efforts to create a stable…