Devaluation of the Pula

Hey, I hope you’re having a great day today!

Before we dive in, if any of you want to buy shares through Stock Brokers Botswana here’s their email to reach out to them

Today I just want to talk about something that always gets unseen by society but will often impact the economy of a country. It is often the decisions that are taken in the moment by leaders of a country that will affect the future of its people and most times those decisions will only be visible to the public in that future, when it has a negative impact they will feel it unfortunately it will be too late.

And that decision here is our government devaluing the Botswana currency. Why is the government doing this? How will it affect you? How can you prepare yourself for the negative consequences of it? Let’s briefly discuss below

According to various reports and articles online, the government of Botswana has decided it will devalue the currency of the nation by 1.51%, why?

The country’s production capacity and productivity in the economy is weak which is why to help fix that the government weakened the Pula to make it cheaper to export goods locally made, attracting international traders to buy.

How this will negatively affect you.

The likelihood is goods are about to be more expensive. Consumer goods will rise more in price, and you will have to increase your grocery spending but I’m not sure your salary will be able to keep up with all these price hikes.

So if you think you were broke during the last Black Friday wait for part 2 because imported goods will be expensive.

This is all part of the government’s plan to decrease demand for imported goods and increase demand for locally produced goods, after all this is what put China in the number 2 spot in the world’s strongest economies.

How you can be inflation-proof

If you want to beat inflation the best way to do it is not investing in real estate, not starting a business, not investing in stocks, it is to invest in yourself.

This sounds contradictory but true. Many of us want to invest in all of those but most of us spend so little time investing in the right knowledge to make those things work for us.

You can invest in all of those assets but still lose all your money because you did not invest in knowing how to make them profitable for you.

So before you think of investing in these, think about investing in yourself regarding the knowledge and skill to make them work, and also the best way to start is with something you are already good at doing or experienced in.

For instance, as a video editor I am focusing on increasing my skills in creating video ads and advertising campaigns on social media. Your skills can be selling, marketing, teaching or tutoring, any profession you’re already in, add more important skills that will help you to increase your earnings and then you can invest in real estate, shares, and other things like farming.

I hope you enjoyed this read, see you next week.