Monday, August 9, 2010

Pula hinges on Rand depreciation

The Mmegi Newspaper reports that there is increasing possibility of a Rand depreciation, which will ease pressure on the Pula reducing the country's import bill and ease domestic inflation. According to the newspaper article the Rand has gained against the Pula and other hard currencies since last year, strengthening from levels of R10.27 to the greenback in February 2009, to its current R7.31. From February 2009 to February 2010, the Rand rose by 37 percent against the US Dollar, during which period the Pula declined by approximately 12 percent against the Rand.

Over the same period, the Pula has generally firmed against the US Dollar, as a result of the operation of the currency basket against which it is managed. Botswana's currency basket includes the Rand, US Dollar, British Pound, Euro and Japanese Yen. Read more...

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