1.   Short title


   2.   Interpretation




Establishment, Constitution and Objectives


   3.   Establishment of central bank


   4.   Principal objectives of Bank




Capital, Profits and Reserves


   5.   Capital


   6.   Profits


   7.   General Reserve




Board, Management and Staff


   8.   Establishment and powers of Board


   9.   Membership of Board


   10.   Other members of Board


   11.   Vacancy


   12.   Meetings and quorum of Board


   13.   Governor and Deputy Governors


   14.   Ineligibility


   15.   Disqualification and removal from office


   16.   Resignation


   17.   Appointment of officers, employees, agents and correspondents


   18.   Conflicts of interest


   19.   Secrecy




Monetary Unit, Notes and Coins


   20.   Monetary unit


   21.   Exchange rate


   22.   Sole right to issue notes and coins


   23.   Notes and coins to be legal tender


   24.   Manufacture and characteristics of notes and coins


   25.   Power to recall currency


   26.   Exchange of notes and coins


   27.   Penalty for mutilation of notes


   28.   Recovery of lost or stolen notes and coins


   29.   Counterfeiting, forgery, etc.




International Reserve


   30.   Authority to transact foreign exchange business


   31.   Primary International Reserve


   32.   Adequacy of Primary International Reserve


   33.   Operations in foreign exchange


   34.   Limitations


   35.   Long term investment funds




Relations with Financial Institutions


   36.   Opening accounts for domestic financial institutions, etc.


   37.   Opening accounts for other institutions, etc.


   38.   Operations with account holders


   39.   Determination of rates for discounts and advances


   40.   Primary reserve requirements


   41.   Regulation of interest and credit


   42.   Maximum amounts of foreign currency holdings or loans


   43.   Clearing facilities




Regulation of Companies which have Applied for or been Issued with a Tax Certificate


   44.   Interpretation


   45.   Application


   46.   Exemptions


   47.   Supervisory and inspection powers


   48.   Power to inspect


   49.   Recommendations of Bank


   50.   Disclosure of information


   51.   Levying of fees


   52.   Offences


   53.   Penalty




Relations with Government


   54.   Banker, fiscal agent of and adviser to Government


   55.   Bank depository of Government funds


   56.   Management of Government securities


   57.   Agency functions


   58.   Banker and fiscal agent to Government boards and agencies


   59.   Borrowings by Government and public bodies, etc.


   60.   Advances to Government


   61.   Transactions in Government securities


   62.   Limitation on lending to Government


   63.   Agent for the administration of exchange control


   64.   Depository and fiscal agency for international financial organizations


   65.   Policy directives by President




Accounts, Financial Statements and Financial Year


   66.   Accounts, financial statements and financial year


   67.   Audit


   68.   Annual report and monthly return






   69.   Prohibited activities


   70.   Bank may call for information


   71.   Exemption from Banking Act


   72.   Exemption from taxes, etc.


   73.   Regulations


   74.   Repeal and saving



Act 19, 1996,
Act 19, 1999,
Act 2, 2007.

An Act to provide for the establishment of the Bank of Botswana, its constitution, objectives and powers; to regulate the issue of Bank notes and coins; to provide for certain matters connected with banking, currency and coinage, and for matters connected therewith and incidental thereto.

[Date of Commencement:1st January, 1997]

Preliminary (ss 1-2)


1.   Short title

   This Act may be cited as the Bank of Botswana Act, 1996.


2.   Interpretation

   In this Act, unless the context otherwise requires-

   "Bank" means the Bank of Botswana established under section 3;

   "Board" means the Board of the Bank established under section 8;

   "Deputy Governor" means a deputy governor appointed under section 13;

   "financial institution", "bank" and "licensed" shall have the same meanings ascribed thereto under the Banking Act;

   "Governor" means the Governor of the Bank appointed under section 13;

   "legal tender" means currency which, legally, cannot be refused to settle debt or to effect payment at an agreed price;

   "member" means a member of the Board and includes the Governor;

   "officer" means an employee of the Bank who is authorized by the board to sign legal or other documents on behalf of the Bank;

   "public issue" means any financial instrument issued or guaranteed by Government, which members of the public are eligible to hold.

Establishment, Constitution and Objectives (ss 3-4)


3.   Establishment of central bank

   (1) There is hereby established a central bank, to be known as the Bank of Botswana, which shall be a body corporate with perpetual succession and a common seal, capable of suing and being sued in its corporate name and which, subject to the provisions of this Act, may hold and dispose of movable and immovable property and do all such other things as are necessary for or conducive to the proper carrying out of its objectives and the performance of its functions.

   (2) The Bank shall have its head office in Gaborone and may establish branches in Botswana and, with the approval of the Minister, abroad, and may appoint agents and correspondents in Botswana and abroad.


4.   Principal objectives of Bank

   (1) The principal objectives of the Bank shall be-


   (a)   first and foremost to promote and maintain monetary stability, an efficient payments mechanism and the liquidity, solvency and proper functioning of a soundly based monetary, credit and financial system in Botswana;


   (b)   secondly, in so far as it is not inconsistent with the objectives set out in paragraph (a), to foster monetary, credit and financial conditions conducive to the orderly, balanced and sustained economic development of Botswana; and


   (c)   thirdly, to assist insofar as it is not inconsistent with the objectives as set out in paragraphs (a) and (b), in the attainment of national economic development goals.

   (2) In the attainment of the objectives set out in subsection (1), the Bank shall have and may exercise all the powers generally conferred upon a central bank.

Capital, Profits and Reserves (ss 5-7)


5.   Capital

   (1) The authorized capital of the Bank shall be P25 000, 000.

   (2) Government shall be the sole subscriber to and holder of the capital of the Bank, and its holdings of such capital shall not be transferable in whole or in part or be subject to any encumbrance whatsoever.

   (3) Whenever the assets of the Bank are less than the sum of its liabilities and capital, the Minister, notwithstanding the provisions of any other written law, shall cause to be transferred to the ownership of the Bank non-negotiable non-interest bearing Government securities for such amount as is necessary for the purpose of preserving such capital from any impairment, which securities shall be a charge on the Consolidated Fund.


6.   Profits

   (1) At the end of each financial year of the Bank, the Bank shall transfer any net profits from its operations to the Government in accordance with a schedule to be agreed between the Bank and the Minister after-


   (a)   meeting all expenses for such year;


   (b)   making provision for bad and doubtful debts;


   (c)   making provision for depreciation of physical assets;


   (d)   making provision for pensions, gratuities and other benefits for its officers and employees;


   (e)   making provision for such other items as the Board may deem necessary;


   (f)   making good the issued capital and General Reserve balances; and


   (g)   deducting any amounts due and payable to the Bank by the Government.

   (2) Any net losses incurred by the Bank in any financial year shall, after the Bank has advised Government thereof, be charged first to the General Reserve and then to the Capital.

   (3) In determining profits and losses at the end of the financial year, the Bank shall clearly distinguish profits and losses arising from normal operations and profits and losses arising from exchange fluctuations.


7.   General Reserve

   (1) The Bank shall establish and maintain a General Reserve sufficient to enable it to accomplish its principal objectives, the amount of which General Reserve shall be determined from time to time by the Board in consultation with the Minister.

   (2) The Bank may transfer, to the General Reserve, funds from other reserve accounts which it maintains.

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