The study looked at how the exchange rate and prices in Botswana are connected. They found that South African prices play a big role in determining prices in Botswana. In the long run, the exchange rate and South African prices are linked to prices in Botswana. In the short term, both local prices and imported inflation affect the price level each month. This means that policies like monetary, exchange rate, and fiscal policies can help control inflation in the short term. However, changes in the exchange rate and prices only have temporary effects on price competitiveness. Eventually, prices adjust back to their normal levels.