Botswana

Botswana

The Botswana pula has traditionally had a similar exchange rate to the

South African rand, which meant that goods sold for almost the same price

in both countries.

Exchange rates: Botswana

pulas per US$1

Jan 2001 5.4585

2000 5.1018

1999 4.6244

1998 4.2259

1997 3.6508

1996 3.3242

SOURCE : CIA World Factbook 2001 [ONLINE].

During the late 1990s the pula was much stronger than the rand, resulting in

South African products becoming relatively cheaper when purchased in pula.

Botswana could afford to import more South African products. The stronger

pula relative to the rand also meant that foreign investors found Botswana

a more attractive place to invest money. However, during the same time period

the pula gradually lost its value against the U.S. dollar, meaning that imports

valued in U.S. dollars, such as those from the United States it

self as well as from

many other countries, were more expensive. But Botswana's exports, especially diamonds,

were cheaper for American and European buyers.

The Botswana Stock Exchange, established in 1995, had 22 companies listed in 2001,

including 6 South African companies.