BWP - Botswana Pula

History of the Botswana Pula

Before 1966, prior to Botswana’s independence in 1977, the official currency in use was the South African Rand (ZAR). This was because Botswana was part of the South African Federation, and the Rand was the circulating currency within its financial system. 

After gaining independence in 1966, the government of Botswana decided to issue its own national currency to assert sovereignty and foster independent economic growth.

On August 23, 1976, the Botswana Pula was officially introduced to replace the Rand at par. After a 100-day transition period, the Rand ceased to be legal tender in Botswana.

Botswana Pula denominations

The Botswana Pula (BWP) comes in coins and banknotes with different denominations and has undergone various changes in materials and values over the years.

Botswana Pula coins

The denominations of Botswana Pula coins include:

• 1 Thebe (withdrawn in 1991)

• 2 Thebe (withdrawn in 1998)

• 5 Thebe (Nickel-plated steel)

• 10 Thebe (Nickel-plated steel)

• 25 Thebe (Nickel-plated steel)

• 50 Thebe (Nickel-plated steel)

• 1 Pula (Bronze-plated steel)

• 2 Pula (Bi-metallic; bronze-plated steel in center, nickel-plated steel in ring)

• 5 Pula (Bi-metallic; copper-nickel in center, brass in ring)

In 1976, Botswana introduced coins in denominations of 1, 5, 10, 25, and 50 Thebe. The 1 Thebe coin was made of aluminum, the 5 Thebe coin of bronze, and the higher denominations were made of copper-nickel. Most of the coins were round, except for the 1 Pula coin, which had distinct edges.

In 1981, a twelve-sided 2 Thebe coin made of bronze was introduced, but its production ceased in 1985.

By 1991, coin materials changed to more durable options: copper-nickel coins were replaced with nickel-plated steel, and bronze coins were swapped for copper-plated steel. Additionally, the 1 Pula coin became smaller and adopted a seven-sided shape.

In 1994, a seven-sided 2 Pula coin made from nickel-brass was launched, followed by a two-metal version in 2000, which featured the Mopane caterpillar and Mopane tree branch. This coin had a copper-nickel core and an aluminum-nickel-bronze outer ring.

In 2004, the size of the 2 Pula coin was reduced, and it was produced using brass-plated steel.

A new series of coins was introduced in 2013, and the older versions were withdrawn from circulation in 2014.

Botswana Pula banknotes

The Botswana Pula banknotes are issued in the following denominations: 10 Pula

• 20 Pula (Green with President Seretse Khama Ian Khama on the observe)

• 25 Pula (Red with Kgalemang Tumediso Motsete on the observe) 

• 50 Pula (Brown with President Sir Seretse Khama on the observe)

• 100 Pula (Blue with image of Three chiefs on the observe)

• 200 Pula (Purple with image of female teacher and children on the observe)

On August 23, 1976, the Bank of Botswana introduced its first banknotes in denominations of 1, 2, 5, and 10 Pula, followed by the issuance of the 20 Pula note on February 16, 1978. In 1990 and 1993, the 50 and 100 Pula notes were added.

Between 1991 and 2000, the 1, 2, and 5 Pula banknotes were gradually replaced by coins, with the banknotes officially withdrawn from circulation in 2011.

In 2009, a new series of banknotes was introduced, including the 200 Pula note.

To address concerns over the durability and security of its paper notes, the Bank of Botswana released a polymer 10 Pula note on February 1, 2018.

In 2020, the bank issued a redesigned polymer 10 Pula note featuring an image of the current President, Mokgweetsi Masisi.

Exchange Rate and Stability of the Botswana Pula

The Botswana Pula is considered stable compared to the currencies of other African nations. Strong economic policies and effective management of mineral resources, particularly diamonds, have allowed the country to maintain a relatively stable exchange rate over the years.

The BWP tends to remain stable against the USD and other major currencies due to Botswana's economy being less reliant on debt and backed by strong financial foundations.

However, factors such as fluctuations in the diamond mining industry and changes in trade relations could impact the value of the BWP in the future. Therefore, strict management of monetary and economic policies plays a crucial role in maintaining stability.

Factors influencing Botswana Pula’s value

Botswana Pula is relatively a stable currency, and this is attributed to the country’s strong economic policies and prudent management from the government. Botswana’s economy is heavily reliant on the diamond industry, so fluctuations in global demand for diamonds can significantly impact export revenues and the value of the Pula. 

Moreover, considering the country’s trade relations with key partners, namely South Africa, any changes and adjustments in trade agreements or disruptions in the region's trade flows can affect the currency’s value.

Another key factor is Botswana’s low reliance on foreign debt, which helps maintain a strong fiscal position and bolsters investor confidence in the currency. The Bank of Botswana’s monetary policies, including interest rate adjustments and inflation control, are vital in regulating the Pula’s value. Political stability further reinforces the currency’s strength, as a secure political environment encourages both domestic and foreign investment. 

Lastly, global economic trends, such as shifts in commodity prices and the strength of major currencies like the U.S. dollar, also play a role in determining the Pula’s value on the international stage.