02 Mar 2014

Government has consistently pursued the objective of low, predictable and sustainable level of inflation through sound economic management and fiscal prudence.

The Minister of Finance and Development Planning, Mr Kenneth Matambo said during the launch of a new family of Botswana coin on February 27 in Gaborone.

He said the policies had been complemented by appropriate monetary policy and by ensuring the banking system was sound and buttressed by a payment system that was secure and efficient. The policy of maintaining a stable purchasing power of the national currency through inflation could not be over-emphasised, he said.

Mr Matambo said success in the areas had underpinned public confidence in the national currency, the constituent part of which was coin money. He stated that following a diligent global research and evaluating bids made by a number of top class minting companies, the bank awarded the contract to the Royal Canadian Mint to produce the new family of coins.

Meanwhile, Bank of Botswana governor Ms Linah Mohohlo explained that management of all currency was now conducted on cash flow management centre located at Diamond Park.

Ms Mohohlo said the facility assured efficient handling and delivery of quality service to commercial banks and generally enhanced efficiency in the national cash management cycle.

She said although banknotes and coin continued to be a major medium of exchange in Botswana, non-cash transactions, especially electronic transfers, had gained considerable ground. The result was that average monthly cheque payments declined by over 50 per cent to about P3 billion in five to 2013, she said.

She noted that in the same period, congestion at banking halls for cash withdrawal had eased, due to increasing number and usage of Automated Teller Machines (ATM’s).

Ms Mohohlo observed the value of average monthly ATM withdrawals increased by about 50 per cent to P1.3 million. She said the efficiency of national payments would be enhanced by the introduction of cheque imaging and truncation system, which would reduce the cheque clearing cycle.

She further indicated both the Accountant General’s Office and Bank of Botswana through the electronic Botswana Interbank Settlement System. Ms Mohohlo said it would greatly improve the speed, security and efficiency of government payment transactions, as well as those of Botswana Unified Revenue Service. ENDS