⚠️ Factors That #Bob Could Lead to a Downfall:
1. Commodity Price Drop: Botswana is heavily dependent on diamond exports. A significant drop in diamond prices or global demand could weaken the currency.
2. Policy Shifts: If the Bank of Botswana suddenly cuts rates or increases the money supply, that could devalue the BOB.
3. Inflation Spike: Rising inflation without corresponding interest rate increases could erode purchasing power and lower investor confidence.
4. External Shocks: Regional instability (e.g., in neighboring South Africa or Zimbabwe) or global financial turmoil could pressure the pula.
5. Tourism Decline: A key source of forex for Botswana, tourism declines (e.g., due to pandemics or geopolitical issues) could weaken the currency.
📊 What to Watch:
Central Bank Statements from the Bank of Botswana.
Commodity Prices, especially diamonds and copper