The Bank of Botswana has announced that, effective July 1, 2011 the Primary Reserve Requirment for commercial banks will be increased from 6.5 percent to 10 percent of their total Pula deposits. This is in accordance with Section 40 of the Bank of Botswana Act. The increase is in order to limit the costs of liquidity absorption, and is not expected to constrain the supply of credit for productive lending.