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.