7  For its part, the Bank of Botswana has entrenched a largely credible monetary policy framework, with inflation sustained within the objective range of 3 – 6 percent and allowing for maintenance of relatively low interest rates. Furthermore,  effective regulatory oversight and prudently managed financial institutions continue to contribute to maintenance of a sound and stable financial system.
A third source of demand for cash equivalents resulted from the adoption of more elaborate investment strategies by many institutional investors. For example, as more such investors used derivatives or short-selling as part of their overall strategies, they needed cash or cash-like instruments for margining and other collateral purposes.