Reserves to improveS& P

S& P Global forecasts foreign currency reserves including the Pula Fund, to gradually improve to about $ 6.5 billion through 2025 ( from $ 4.8 billion in 2021) on stronger export receipts. This will in turn support the pula exchange rate. The downward rate of crawl of 2.87 percent, introduced in May 2020 was maintained in 2022 to support its export base. Since January, the pula depreciated 1.6 percent ( as of July 2022), which was consistent with the rate of crawl. “We anticipate that the pula will remain in a crawling peg exchange rate arrangement against the South African rand and the IMF’s special drawing right.”