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BFS Highlights by gabyion




                                                       Domestic       SADC Members              Rest of the

 1.            Research Bulletin (per copy)            ii P11.00         US$5.00                  US$10.00

 2.            Annual Report (per copy)                ii P22.00         US$10.00                 US$15.00

 3.            Botswana Financial Statistics                  Free       US$25.00                 US$40.00
               (annual, 12 issues)                     ii
 4.            Aspects of the Botswana                      P82.50       US$29.00                 US$42.00
               Economy: Selected Papers                ii

Please note that all domestic prices cover surface mail postage and are inclusive of VAT. Other prices include
airmail postage and are free of VAT. Cheques, drafts, etc., should be drawn in favour of Bank of Botswana and
forwarded to the Librarian, Bank of Botswana, Private Bag 154, Gaborone, Botswana.


Regular economic and financial highlights are published on the Bank of Botswana website according to the
following timetable:

Inflation: around the 10th day of each month following the release of the monthly Consumer Price Statistics by
the Central Statistics Office.

Commercial bank credit: around the 27th day of each month.

Exchange rates: by the end of the first business day following the end of each month.

Botswana Stock Exchange: on the first business day following the end of each trading week.

Bank of Botswana Certificates: on Wednesdays, the day following the regular Tuesday BoBC auctions.

Botswana Financial Statistics: around the last day of the month following the publication.


ABC      African Banking Corporation         iiii
BoB      Bank of Botswana
BoBC     Bank of Botswana Certificate        iiii
BOTASH   Botswana Ash
BBS      Botswana Building Society
BDC      Botswana Development Corporation    iiii
BFS      Botswana Financial Statistics
BGI      Botswana Game Industries
BIHL     Botswana Insurance Holdings Ltd     iiii
BMC      Botswana Meat Commission
BMVAF                                       ii
         Botswana Motor Vehicle Accident Fund
BSB      Botswana Savings Bank
BSE      Botswana Stock Exchange
CPI      Consumer Price Index
CSO      Central Statistics Office
DF       Development Fund
ECH      Electronic Clearing House
EFT      Electronic Funds Transfer
FISIM    Financial Intermediation Services Indirectly Measured
FNBB     First National Bank of Botswana
FCA      Foreign Currency Account
GDP      Gross Domestic Product
IMF      International Monetary Fund
PDSF     Public Debt Service Fund
P        Pula
RSF      Revenue Stabilisation Fund
SDR      Special Drawing Rights of the IMF
t        thebe

                             (Relevant table numbers in brackets)
Inflation (2.1-2.5)              In December 2005, inflation as measured by the Consumer Price Index
                                 (CPI) increased to 11.4 percent, 0.1 percent up from 11.3 percent in
                                 November. Apart from increases in inflation for furniture and appliances
                                 (by 0.7 percent from 7.6 to 8.3 percent) and leisure (by 0.5 percent from 4.4
                                 percent to 4.9 percent) there were only marginal upward movements: for
                                 alcohol and tobacco (from 16.7 to 16.9 percent), and clothing and footwear
                                 (from 1.8 to 1.9 percent). Together these offset decreases registered in fuel
                                 and power (from 27.4 to 26.7 percent), household operations (from 10.9 to
                                 10.7 percent), health and personal care (from 4.7 to 4.0 percent) and
                                 transport and communication (from 20.4 to 20.1 percent). By tradeability,
                                 inflation rose iiiiii
                                                 slightly from 13.5 to 13.6 percent in the tradeable category
                                 whilst it declined from 6.1 to 6.0 percent for non-tradeable goods and
Monetary Supply (3.1-3.4)        Between September and October, 2005 M1 and M2 fell by P516.3 million
                                 (14 percent) and P432.5 million (3.7 percent, respectively. This was due to
                                 decreases in demand deposits and currency outside banks of P475.2 million
                                 (16.1 percent) and P41.1 million (5.6 percent), respectively. M3 and M4
                                 increased by P290.0 million (1.5 percent), and P649.3 million (3.0 percent),
                                 respectively. The increase in M3 was due to a rise in Bank of Botswana
                                 Certificates of P722.5 million (9.6 percent) while the growth in M4 was due
                                 to increase of P359.3 million (14.5 percent in foreign currency deposits.

                                 Net foreign assets increased by P1 507.4 million (4.3 percent) to P36 219.3
                                 million in October from P34 711.9 million the previous month. The increase
                                 was a result of rise in Bank of Botswana foreign assets by          P1 008.7
                                 million (3.0 percent) and P83.6 million (2.9 percent) increase in commercial
                                 banks’ foreign assets against a decrease of P415.0 million (24.8 percent) in
                                 foreign liabilities of commercial banks. The increase in Bank of Botswana
                                 foreign exchange reserves was mainly a result of domestic foreign exchange
                                 inflows (P110.2 million), net currency revaluation gains (P981.9 million)
                                 and interest and dividend income (P94.2 million) that were offset by net
                                 market losses (P173.4 million).

Total Deposits (3.13-3.16)       Total deposits held by commercial banks were P13 758.4 million in
                                 November, 2005 down by P68.9 million (0.5 percent) from P13 827.3
                                 million in October. While there was a substantial decline fixed deposits up
                                 to six months of P447.7 million (28.6 percent) this was substantially off seet
                                 by increases of P210.4 million (3.1 percent) and P108 million (19.5 percent)
                                 in call accounts and deposits fixed for up to 12 months.

Credit Growth (3.17-3.19)        The year-on-year growth in commercial banks’ credit was 6.9 percent in
                                 November 2005 compared to 8.0 percent in October. This is 4.1 percent
                                 below the lower end of the Bank of Botswana credit growth target range for
                                 2005 of 11-14 percent. The fall in the annual rate of credit growth was
                                 attributable to lower year-on-year growth in credit to the business sector,
                                 which was down to 1.0 percent from 5.4 percent in October. Month-on-
                                 month, credit to this sector fell by 0.6 percent. At the same time, year-on-
                                 year growth in credit to the household sector was 11.5 percent, up 1.5
                                 percent from 10.0 percent in October. The monthly growth in credit to
                                 households rose from 0.1 percent in October to 1.7 percent in November.
                                 The share of credit to the household sector in overall credit increased to 59.0
                                 percent from 58.4 percent in October.

Bank of Botswana Certificates (4.3)                   iviv
                                      The value of outstanding Bank of Botswana Certificates increased by P319.1
                                      million (2.6 percent) to P12 671.9 million in November from P12 352.8
                                      million in October. The increase in BoBCs is attributed to the rise in own
                                      holdings of commercial banks of P26.6 million (0.6 percent) and their
                                      holding on behalf of customers of P193.3 million (4.6 percent), and other
                                      financial institutions holdings of P157.8 million (12.0 percent).

Exchange Rates (6.5)                                iviv
                                      During November 2005, the Pula appreciated against all major international
                                      currencies except the rand, against which it depreciated by 2.1 percent. It
                                      appreciated most against the Japanese yen (4.3 percent) and least against the
                                      US dollar (0.1 percent). On an annual basis, the Pula depreciated against all
                                      major currencies. The smallest depreciation was 9.4 percent against the
                                      Japanese yen while the largest was 21.8 percent against the US dollar.

Foreign Reserves (6.10)               Following a slight decrease in September, foreign exchange reserves increased
                                      by P1 009 million (3.0 percent) in October to P34 544 million from P33 535
                                      million. The increase was the result of net revaluation gains of P981.9 million,
                                      domestic foreign exchange inflow of P110.2 million and interest and dividends
                                      income of P94.2 million. These were offset by net market losses of P173.4

                                      In US dollar and SDR terms, the foreign exchange reserves decreased,
                                      respectively, by USD51.6 million and SDR23.4 million, to USD6 155.8
                                      million and SDR4 275.8 million.

                                  CONTENTS                                         Page
1.     National Output

1.1    Gross Domestic Product by Type of Expenditure - Current Prices              1
1.2                                       vv
       Gross Domestic Product by Type of Expenditure - Constant 1993/94 Prices     2
1.3    Gross Domestic Product by Type of Economic Activity - Current Prices        3
1.4    Gross Domestic Product by Type of Economic Activity - Constant 1993/94
       Prices                              vv                                      4

2.     Prices

2.1    Cost of Living Index by Location (November 1996 =100.0)                     5
2.2    Cost of Living Index (November 1996 =100.0)                                 6
2.3    Annual Inflation                                                            6
2.4    Cost of Living Index by Commodity Group (November 1996 =100.0)              7
2.5    Cost of Living Index: Tradeability Analysis (November 1996 =100.0)          8

3.     Banking System

3.1    Monetary Survey: Monthly Balances                                      9
3.2    Monetary Survey: Monthly Percentage Change                                  10
3.3    Monetary Survey: Year-end/Quarterly Balances                                11
3.4    Monetary Survey: Year-on-Year Percentage Change                             12
3.5    Bank of Botswana: Assets                                                    13
3.6    Bank of Botswana: Liabilities                                               14
3.7    Notes in Circulation: by Denomination                                       15
3.8    Coins in Circulation: by Denomination                                       16
3.9    Commercial Banks: Assets                                                    17
3.10   Commercial Banks: Liabilities                                               18
3.11   Commercial Banks: Liquid Assets                                             19
3.12   Commercial Banks: Reserves                                                  20
3.13   Commercial Banks: Deposits by Holder                                        21
3.14   Commercial Banks: Deposits by Type                                          22
3.15   Commercial Banks: Deposits by Holder (Percentage Distribution)              23
3.16   Commercial Banks: Deposits by Type (Percentage Distribution)           24
3.17   Commercial Banks: Loans and Advances Outstanding by Sector             25

3.     Banking System (continued)

3.18   Commercial Bank Credit: Outstanding Loans and Advances to Households
                                         vivi                                     26
3.19   Commercial Banks: Advances and Liquid Asset Ratios                    27
3.20                                   vivi
       Commercial Banks: Loans and Advances by Maturity                           28
3.21   Commercial Banks: Loans and Advances by Interest Rate
       (Percentage Distribution)                                                  29
3.22                                    vivi
       Commercial Banks: Off-Balance Sheet Items                                  30
3.23   Commercial Banks: Income and Expenses                                      31
3.24   Commercial Banks: Arrears on Loans and Advances                            32
3.25   Commercial Banks: Arrears by Sector vi                                     33
3.26   Electronic Clearing House (ECH) – Cheque Clearance and Electronic
       Funds Transfer (EFTS)                                                      34

4.     Money and Capital Markets

4.1    Interest Rates                                                             35
4.2    Interest Rates: Nominal and Real                                           36
4.3    Bank of Botswana Certificates: Total Outstanding                           37
4.4    Bank of Botswana Certificates: Auctions Summary                            38
4.5    Botswana Stock Exchange: Total Listings                                    39

5.     Non-Bank Financial Institutions

5.1    Merchant Banks: Assets and Liabilities                                     40
5.2    Botswana Building Society: Assets and Liabilities                          41
5.3    Botswana Development Corporation Ltd: Assets and Liabilities               42
5.4    Botswana Motor Vehicle Accident Fund: Assets and Liabilities               43
5.5    Botswana Savings Bank: Assets and Liabilities                              44
5.6    Hire Purchase Finance and Leasing Companies: Assets and Liabilities        45
5.7    National Development Bank: Assets and Liabilities                          46
5.8    Distribution of Pension Fund Assets                                        47

6.     External Trade and International Finance

6.1    Balance of Payments Analysis                                               48
6.2    Balance of Payments Summary                                                49
6.3    Exports: Principal Merchandise                                             50

6.4                Exports: Selected Commodity Price viivii
                                                     Indices                                                 51
6.                 External Trade and International Finance (continued)

6.5                Exchange Rates: Foreign Currency Per Pula
                                                     viivii                                                  52
6.6                Exchange Rates: Foreign Currency Per Pula - Averages                            53
6.7                                                  viivii
                   Exchange Rates: Selected Foreign Currencies Per US Dollar                                 54
6.8                Exchange Rates: Selected Foreign Currencies Per US Dollar - Averages                      55
6.9                Real Exchange Rates Indices: Foreign Currency Per Pula                                    56
6.10                                                 viivii
                   Foreign Exchange Reserves: Selected Currencies                                            57
6.11               Commercial Banks: Foreign Currency Accounts and Total Deposits                            58
6.12               Commercial Banks: Foreign Currency Deposits by Type                                       59
6.13               Foreign Currencies: Sales by the Banking Sector
                                                        vii                                                  60
6.14               Foreign Currencies: Purchases by the Banking Sector                                       61
6.15               International Investment Position                                                         62

7.                 Public Finance

7.1                Government: Budget Summary                                                                63
7.2                Government Revenue                                                                        64
7.3                Government Expenditure                                                                    65
7.4                Government Lending: Outstanding Loans (PDSF, RSF and DF)                        66
7.5                Government: Medium and Long Term External Government Guaranteed
                   Debt Outstanding                                                                          67

The following symbols have been used throughout this publication:
...      to indicate that data are not available, either because information was not available to the Bank of
         Botswana at the time of publication, or that a facility/institution/classification, etc., did not exist; and
-        to indicate that the figure is zero or less than half the final digit shown.
Any changed data appear in bold/italics.

Notes :                                                 viiiviii
    1.    Tables in this publication are prepared according to relevant international standards. In particular they
          follow the guidelines set out in System of National Accounts (SNA) and the relevant manuals of the IMF,
          including the Monetary and Financial Statistics Manual 2000, 5th Balance of Payments Manual and the
          1986 Government Finance Statistics Manual.
    2.                                                   viiiviii
          In most cases the tables report data over a ten-year period up to the most recent time for which data is
          available. However, in some cases the reporting period may be either shorter or longer depending on data
          availability and the space needed for reporting.
    3.                                              viiiviii
          The publication is reviewed on a regular basis to ensure the reporting of relevant data and to enhance
          presentation. Hence there may be some variation in content and presentation from year to year. The
          following tables have been included for the first time effective April 2005 publication:

          3.18               Commercial Bank Credit: Outstanding Loans and Advances to Households
          3.26               Electronic Clearing House (ECH) – Cheque Clearance and Electronic
                             Funds Transfer (EFTS)
          4.1                Interest Rates (combining previous Tables 4.1 – 4.3)
    4.    For some tables, numbers do not add up to stated totals due to rounding off.

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