Mmegi

BoB releases P2bn to banks as govt cash crunch spills over

Taking action: Dekop PIC: PHATSIMO KAPENG
Taking action: Dekop PIC: PHATSIMO KAPENG

The Bank of Botswana is allowing local banks access to about P2 billion of their own cash held in reserve, to alleviate a liquidity crisis caused by the sharp drop in cash inflows from the banks’ biggest customers – the government and Debswana.

From December 11, the Primary Reserve Ratio or PRR, which is a proportion of deposits banks are required to keep at the BoB in order to manage liquidity or cash flows, will be reduced from a rate of 2.5% to zero.

The move will allow banks to have access to an additional P2.1 billion for lending activities, as a liquidity crunch first noted as far back as May, deepens.

Editor's Comment
Human rights are sacred

It highlights the need to protect rights such as access to clean water, education, healthcare and freedom of expression.President Duma Boko, rightly honours past interventions from securing a dignified burial for Gaoberekwe Pitseng in the CKGR to promoting linguistic inclusion. Yet, they also expose a critical truth, that a nation cannot sustainably protect its people through ad hoc acts of compassion alone.It is time for both government and the...

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