Foreign Reserves

1. Advantages of foreign reserves
• Money accumulates interest
• The money is kept for future use in case the
country's economy drops
• The money can be used to develop the country if
need arises

2. Disadvantages of foreign reserves
• Foreign reserves also have their setbacks or
disadvantages. For instance currency fluctuations.
• Botswana's foreign reserves are saved in US
dollars, and because of a political situation such
as the economic recession, the dollar has been
fluctuating and as a result, Botswana's savings arc
affected.
• Currently, Botswana has lost USS I billion of its
foreign reserves.