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.

BREAKING DOWN '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.

RELATED TERMS
  1. Pula Fund

    The Pula Fund is a sovereign wealth fund established in 1994 ...
  2. ZAR (South African Rand)

    The currency abbreviation for the South African rand (ZAR), the ...
  3. South African Reserve Bank

    The South African Reserve Bank is the reserve bank of the Republic ...
  4. NAD (Namibian Dollar)

    The currency abbreviation for the Namibian dollar (NAD), the ...
  5. Central African CFA Franc - XAF

    The currency of six independent states in central Africa. The ...
  6. Crawling Peg

    A system of exchange rate adjustment in which a currency with ...
Related Articles
  1. Trading

    The New World Of Emerging Market Currencies

    Take advantage of foreign currency markets without stepping out of your house.
  2. Retirement

    Top 5 Cities To Retire To In Croatia

    Cheaper than the Italian coast along the Adriatic Sea, but full of natural beauty, good food and active sports.
  3. ETFs & Mutual Funds

    Invest in Emerging Market Currencies with this ETF

    Why this emerging market currency ETF needs to be on your radar.
  4. Trading

    Forex Investing: How To Capture Commodity Fluctuations

    For individual or retail investors looking to gain exposure to hot commodity trends, the foreign exchange markets provide the answer.
  5. Managing Wealth

    African Sovereign Debt: Risks and Rewards

    African sovereign debt offers high yields and upside — if one has the stomach for the risk.
  6. ETFs & Mutual Funds

    4 African ETFs Traded in the U.S.

    African markets have become more interesting for private and institutional investors. ETFs with exposure to Africa are an interesting investment option.
  7. Managing Wealth

    African Equities vs. Bonds: Risks and Rewards

    A look at the risks and rewards of exposure to African equities vs. bonds.
  8. Trading

    The 3 Reasons Why Chinese Invest in Africa

    Learn about the increasing level of foreign direct investment by China in Africa, and understand the major reasons for China's African investments.
  9. Markets

    Top 8 Most Tradable Currencies

    Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
  10. Trading

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
RELATED FAQS
  1. How does the balance of trade impact currency exchange rates?

    Find out how the balance of trade affects a country's exchange rates and how those exchange rates can, in turn, affect the ... Read Answer >>
  2. Is there any way to check the historical rates of different currencies?

    Yes, you can create a daily price chart of different currencies going back many years. Price charts can be found on the internet ... Read Answer >>
  3. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>
  4. What types of companies benefit from reporting results utilizing constant currencies ...

    Understand constant currency figures, and explore some of the reasons why a company is likely to benefit from reporting using ... Read Answer >>
  5. Why do forex traders use a currency converter?

    All currencies are quoted in pairs - one country's currency against another country's currency. A currency converter is used ... Read Answer >>
  6. What is foreign exchange?

    Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center