BWP (Botswana Pula)

Definition of 'BWP (Botswana Pula)'


The currency abbreviation for the Botswana pula (BWP), the currency for Botswana. The Botswana pula is made up of 100 thebe and is often presented with the symbol P. The BWP is pegged to a basket of currencies, which operates using a crawling band exchange rate using the International Monetary Fund's special drawing rights (SDR) and the South African rand as reserve assets. The Botswana pula is issued by the bank of Botswana.

Investopedia explains 'BWP (Botswana Pula)'


The Botswana pula was first seen in 1976 when it replaced the South African rand. The Botswana pula is fully convertible due to the abolishment of foreign exchange controls in 1999. Before the rand, many currencies were used and replaced, including the British pound sterling, which was used until 1920, and the South African pound, which was used until 1961, when it was replaced by the South African rand. On August 23, 1976, the pula was introduced at an exchange rate of one for one with the rand. Pula means "rain" or "blessing" because rain is so scarce in Botswana and is therefore considered valuable.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  2. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  3. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  4. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  5. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  6. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
Trading Center