Bank of Botswana, ECA, and Frontclear strive to create a dynamic interbank money market

Abstract

The Bank of Botswana, the United Nations Economic Commission for Africa (ECA), and Frontclear have partnered to enhance Botswana’s interbank money market through the launch of a Money Market Diagnostic Framework (MMDF). This initiative aims to identify market impediments, recommend reforms, and foster a more dynamic and inclusive financial system. A key focus is strengthening interbank lending, secondary bond markets, and liquidity management while addressing challenges such as market fragmentation and regulatory gaps. The collaboration, formalized through a Memorandum of Understanding (MOU), seeks to improve monetary policy transmission, financial resilience, and investor participation. Stakeholders, including central bank officials, financial institutions, and development experts, emphasized the importance of repo markets, derivatives, and legal frameworks in achieving these goals. The initiative aligns with broader efforts to deepen African capital markets and support economic growth.