Tuesday, September 14, 2010

Botswana pays heavily for its monetary policy

The Sunday Standard Newspaper (12.09.10 edition) carries news that the Central Bank’s monetary policy has been sharply criticised for enabling the local commercial banks to rip-off customers through huge interest rates while at the same time milking the country of billions of pula through Bobcs. This has emerged from a recent research report by Professor Roman Grynberg, a Senior Research Fellow at the Botswana Institute for Development Policy Analysis (BIDPA)

In his paper, entitled “Cost of Botswana Monetary Policy”, which is currently circulating within a close net of people, Professor Roman Grynberg charged that the tolls that are employed by Bank of Botswana have enabled commercial banks to profit from unbelievable interest rates while at the same time getting huge returns from Bobcs at no risk. Click here to read more...

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