Botswana’s economy staged an impressive recovery during the past year. The strong economic recovery has helped stabilize financial market conditions. The overall external position has also strengthened. The overriding economic policy challenges are to reduce the size of government sustaining growth, diversify the economy, and improve its quality. The monetary and fiscal policy stance on the global food and fuel price shocks has been commended by Executive Directors. Sustaining growth, broadening its sources, and improving its quality are key policy priorities of the government.

Abstract

Botswana’s economy staged an impressive recovery during the past year. The strong economic recovery has helped stabilize financial market conditions. The overall external position has also strengthened. The overriding economic policy challenges are to reduce the size of government sustaining growth, diversify the economy, and improve its quality. The monetary and fiscal policy stance on the global food and fuel price shocks has been commended by Executive Directors. Sustaining growth, broadening its sources, and improving its quality are key policy priorities of the government.

FUND RELATIONS

As of May 31, 2011

Membership Status

Joined July 24, 1968; Article VIII

General resources account

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SDR Department

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Outstanding Purchases and Loans None

Financial Arrangements None

Project Obligations to Fund None

Implementation of HIPC Initiative None

Exchange Rate Arrangements

The exchange rate of the Botswana pula is a crawling peg arrangement against a basket of currencies. As of June 15, 2011, the exchange rate of the U.S. dollar to the pula was US$1= P6.519, and that of the South African rand to the pula was R1 = P0.96284.

Botswana accepted the obligations of Article VIII, Sections 2, 3, and 4 of the Fund’s Articles of Agreement, as of November 17, 1995, and maintains an exchange rate system free of restrictions in the making of transfers and payments of current account transactions.

Article IV consultation

Botswana is on a standard 12-month consultation cycle. The last Article IV consultation was concluded by the Executive Board on July 27, 2010.

Technical assistance

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JOINT WORLD BANK AND IMF WORK PROGRAM

As of June 14, 2011

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STATISTICAL ISSUES

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Table 1.

Botswana: Common Indicators Required for Surveillance

(As of June 15, 2011)

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Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).

Reflects the assessment provided in the data ROSC published on April 6, 2007, and based on the findings of the mission that took place from October 31 to November 13, 2006, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).

Same as footnote 2, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Botswana: 2011 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Botswana
Author: International Monetary Fund