THE BOTSWANA pula is undervalued, says the Bank of Botswana but not by the 24% against international currencies that a report by Stockbrokers Botswana claims. The bank has also indicated it is unlikely to change its policy of linking the pula to the South African rand. It sells 90% of its manufactured goods to South Africa and buys 80% of everything it needs from that country. The currency link keeps foreign exchange risk negligible for these crucial transactions. Local investment analysts see this policy as one that discourages investors. By linking the pula to the rand, the Bank of Botswana takes on the risk of whatever international currency markets do to the rand.