5th December 2023
Make a Donation

Botswanan economist wants market, bank rates equalized

Author : | Published: Friday, October 9, 2015

A Botswanan economist says the economic situation in the country needs an urgent reform from key policy makers to avoid worse case scenarios.

Dr. Kieth Jefferies, former Deputy Governor of the Bank of Botswana, suggests one of the short term solutions to the inflation in the country is to adjust the official rate of the hard currency with that of the pararel market.

According to him, the current economic situation is not sustainable unless major reforms are made.

“Part of the problem is the exchange rate and you see that the market is supporting the exchange rate of 16 in the parallel market and the official rate is just less than three,” Dr Jefferies told Eye Radio in an exclusive interview this morning.

If you look at what we have to get to the official rate has to be unified with the parallel market rate and eventually we need to have a market determined fixed rate.”

Dr. Jefferies also said the South Sudan Central Bank has very low hard currency reserve.

He said the conflict has also made the country lose credibility to get loans from outside countries.

Support Eye Radio, the first independent radio broadcaster of news, information & entertainment in South Sudan.

Make a monthly or a one off contribution.

error: Alert: Content is protected !!