Bank of Botswana should maintain stable policy despite COVID-19

Bank of Botswana Photo credit: Southern Times

The Bank of Botswana (BoB), the country’s central bank, has pledged to maintain solid policies despite the prevailing COVID-19 pandemic threatening the country’s economic gains.

BoB Governor Moses Pelaelo said Tuesday the central bank was striving to weather and weather the crisis without causing long-term damage.

“Firstly, it is important to have the strength not to allow a crisis that destroys a track record of prudent policymaking, solid institutional frameworks and, in general, a governance architecture, which could have lasting detrimental effects on the integrity, credibility and profitability of politics Performance, ”said Pelaelo.

He went on to say that economic actors must have the foresight and agility not to waste a crisis.

Pelaelo said the bank will use the window of opportunity created by the crisis to implement structural and political reform, noting that the BoB is committed to ensuring that macroeconomic policies are congruent and the policy choices and responses for immediate stabilization are positive.

Aside from the devastating effects of COVID-19 on economic activity and livelihoods, Pelaelo recognized that the pandemic could challenge the resilience and effectiveness of conventional policies and lead to the accidental disruption or destruction of otherwise good and proven policy frameworks and rules.

In light of the short-term adverse developments in the domestic economy due to the COVID-19 pandemic and the expected disinflationary pressures due to the sub-trend economic performance in the medium term, the bank has taken various measures to avert the potential adverse developments or to mitigate economic fallout, Pelaelo said . “In particular, to prevent liquidity bottlenecks that could result from the adverse effects of the COVID-19 pandemic on the economy and financial markets.” End item

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