Honourable Minister Baledzi Gaolathe: Botswana's foreign reserves
The Honourable Minister has been reported to have laid to rest concerns about the implications for Botswana's economy of the current pandemic in the banking, insurance and property markets of the industrial countries.
Honourable Minister Gaolathe was reported to have said Botswana's foreign reserves in excess of 65 billion Pula remain intact despite the ongoing financial crisis that is pulling down billion dollar industries in America and Europe.
"We try our best to maintain the value of our foreign reserves. We just have to be careful. We have people who are full-time who are always monitoring the market and shifting strategies whenever the situation demands. Obviously, the returns may be lower. Similarly, the reserves invested in bonds in various countries may yield less", said the Honourable Minister.
Asked why he remains confident when the international markets are so shaky, the Minister responded that Botswana's foreign reserves are held in different currencies based on anticipated returns.
"Some reserves are invested in US Dollars, the Euro, Pound Sterling and Australian Dollars, also depending on our exports and assessment at any given point in time. Even the assets which we invest are also diversified. We try not to keep our eggs in one basket. Our foreign reserves are invested all over the world, and when the market is shaky, we always try to keep an eye. The reserves of any country go down if they are used, but when we invest, we try to be careful not to put them in one basket. So on average, our foreign reserves have not been affected by what is going on currently, because of our investment strategy," the Honourable Minister further said.