percent to the sdr and 45 percent to the south african rand. it is also know n that the exchange rate is continuously adjusted using an annual rate of craw l based on the difference in the projected inflation of the trading partner countries and botsw ana ’ s inflation objective ; this rate of craw l is public know ledge, typically announced at the beginning of the year. such transparency has removed uncertainty in the management of the exchange rate. thus, economic agents can use market information and forecasts w ith respect to the freely traded currencies ( that constitute the pula basket ) and inflation, to anticipate the pula exchange rate. in this regard, certainty about the policy path helps to anchor economic decisions in a manner desired by policy action, and that is supportive of industrialisation and economic grow th objectives. distinguished ladies and gentlemen, effective communication also entails common understanding and usage of language. in this regard, there is need, on the part of policy - setting institutions, for consistency in definitions, in the meanings of adjectives attributed to magnitudes of changes and movements in economic indicators, as w ell as the w ording / interpretation of policy action ( or non - action ). to the extent that such common language is accepted and used by the media, policy analysts and commentators, it becomes a tool in policy formulation that has an intended impact on economic decision making. how ever, on the other hand, misreporting, either deliberately or due to lack of understanding of some key concepts, could cause unnecessary confusion in the market and, therefore, be detrimental to the implementation of these macroeconomic policies. communication also entails proper identification of spokespersons for the policy setting institution and matters on w hich they are responsible. a proper arrangement in this regard, promotes credibility and effectiveness of policy communication. for example, the governor of the central bank is normally and appropriately the singular voice on monetary policy, w hile the minister responsible for finance or treasury, is the singular voice on fiscal policy. in concluding, i w ant to point out that, dissemination platforms are also an important component of policy effectiveness, and determine the reach and credibility of macroeconomic policy. for the bank, w e find high - level gatherings such as the launch of the monetary policy statement, economic briefings follow ing publication of the annual report, as w ell as media briefings follow ing monetary policy committee meetings, to be very important. these facilitate both information dissemination, exchange

bankers association of botswana banking and wealth expo keynote address by moses d pelaelo governor, bank of botswana november 16, 2017 distinguished ladies and gentlemen, it is indeed an honour and great pleasure for the bank of botswana to co - host this executive networking dinner as part of the events of the inaugural banking and wealth expo organised by the bankers association of botswana. in line with the theme of the expo, “ bridging the inclusion gap through financial literacy ”, my remarks this evening will focus on four areas, namely, ( a ) importance of financial inclusion, especially for inclusive economic growth ( b ) financial literacy as an essential ingredient for inclusive financial sector ; ( c ) impact of financial sector regulation and ( d ) the role of sound and stable macroeconomic environment, with emphasis on price stability. as his honour the vice president indicated, in his official opening remarks yesterday, financial inclusion has been identified as one of the key strategic priorities for financial sector development in botswana. in this regard, a number of related initiatives form part of key policy documents such as national development plans, and the financial sector development strategy ( 2012 - 2016 ). distinguished guests, the basic elements of financial inclusion can be summarised as a state in which individuals and businesses have access to a full suite of quality financial services, at affordable prices, provided by a range of financial institutions, in a stable competitive market, in a convenient manner, with respect and dignity, to financially capable clients. in this way, households and businesses, regardless of income level, are able to have access to and can effectively use appropriate financial services, to meet their needs. therefore, an indicator of financial inclusion would be the proportion of firms and individuals using financial products and services. these typically include transactions, payments, savings and insurance provided in a responsible and sustainable manner. the alliance for financial inclusion, which is the world ’ s leading organisation on financial inclusion policy and related regulation, estimates that about 2 billion adults, globally, that is, more than half of the total adult population of the world, do not have an account in a formal financial institution. about 90 percent of these unbanked adults are in developing countries. however, the good news is that, according to the 2015 bill gates annual letter, it is estimated that by 2030, about 2 billion people who do not have bank accounts today, will be storing money and making payments with their mobile phones. it is anticipated that, by then, mobile money providers will be offering the full range