fragmented markets as well as low level of financial sector development and, relative to other upper middle - income countries, less inclusive growth. distinguished guests, the imf executive board, on august 31, 2018, completed the 2018 article iv consultation with botswana, and as usual, the botswana authorities were commended for a track record of sound policies that has supported strong growth and macroeconomic stability. however, it is considered opportune to leverage on the favourable prospects to accelerate implementation of structural reforms to unlock the country ’ s growth potential. the specific areas highlighted by the imf include preserving priority infrastructure and social spending, restructuring and privatisation of parastatals, promotion of private sector development and economic diversification, sustained efforts to improve the business climate, including facilitating foreign direct investment as well as skills and realignment of education policies to eliminate existing skills mismatches. the bank ’ s role in supporting economic activity and growth as a contribution to the theme of this national business conference my remarks, this evening, will focus on the role of monetary policy and communication in transiting to high - income status and, also, take the opportunity to launch the bank ’ s maiden monetary policy report. therefore, in a broad sense, the intent is to project the relevance and role of the bank of botswana in contributing to the journey towards highincome status for botswana. to give perspective, you will be aware, distinguished ladies and gentlemen, that the bank exists to protect the value of the local currency, the pula and thebe, through currency management operations, monetary policy, exchange rate management, regulation and supervision of relevant financial institutions and facilitating sound payments and settlement frameworks. essentially, the bank promotes the desire and willingness to hold the local currency, as well as to transact and save locally in pula premised on the quality and durability of the banknotes and coin ; stable, predictable domestic price changes ; safety and soundness of the financial system and reliable payment infrastructure. inevitably, where central banks fail to achieve these outcomes, or are constrained by political interference, economic performance and development suffer considerably ; recent examples include venezuela and zimbabwe. overall, by fostering appropriate conditions, the bank of botswana has, throughout its 43 years of existence, contributed to stability of the macroeconomic environment and financial system, as well as integrity and reliability of payments and settlement platforms ; therefore, enabling economic activity, as manifested in the ability to transact and access financial services. distinguished guests, we are, however

, collectively looking ahead and, in this regard, there are several aspects of mandates and operations of the bank that require modernisation and upgrading in order to remain relevant and contribute to national development aspirations and objectives. indeed, monetary policy and the various instruments, including communication, can only be effective if undertaken alongside improvements in other operations of the bank and policy transmission channels. aliow me to highlight four relevant areas in this regard. modernisation and adaptation of the bank ’ s functions first, there is a need to adapt to changing domestic and global conditions and, also, to ensure that the bank of botswana is appropriately positioned to adequately address new developments and related challenges. some of these include fintechs, digital currencies and similar innovations as well as adopt best practice, to sustain national development. in this regard, there is ongoing review of the bank of botswana act, the banking act and proposals to promulgate a national payments law. the intention is to enhance operational capability, predictability and integrity of policy and regulatory frameworks, as well as to clarify institutional relationships and promote accountability and transparency. furthermore, one of the key lessons from the 2008 / 9 global financial crisis is the need for joint, speedy and coordinated response, by all relevant stakeholders, to any substantial systemic risks emanating from any parts of the financial sector. as part of the broader financial development architecture, there is a need to re - configure institutional arrangements for the financial sector oversight to achieve greater focus on macro - prudential dimensions of financial stability policy and financial safety nets. the recent establishment of the financial stability council is a significant step towards protecting the viability, integrity and sustainability of relationships and cross - holding of exposures within the financial sector and with other economic sectors. as i mentioned, this enables coordinated and decisive response when needed ; ultimately safety of savings and investments and prospects for attracting more. also, one of the key tenets, in this respect, include the need for legislation for the establishment of a deposit protection scheme, to further encourage patronage of the domestic financial system, in particular broader financial inclusion. monetary policy framework distinguished guests, the second area of continuing improvement that i want to highlight relates to the role of the monetary policy framework in facilitating a conducive environment for private businesses to thrive. broadly, an appropriate policy framework should encompass definition and clarity of objectives and instruments, understanding and calibration of transmission channels and, therefore, predictability and, in turn, accountability. it is