Foreign reserves to remain under pressure

Foreign reserve levels came in 15% lower compared to the approximate N$24.8 billion recorded in May, the Bank of Namibia revealed in their recently, released monthly Money and Banking Statistics.
According to Ndangi Katoma, Director: Strategic Communications and Financial Sector Development at BoN, the official reserves figures at the end of June 2016 stood at N$21 billion, N$24.6 for April and N$24.9 billion for March, which shows a dip in the reserves.
BoN attributed the slowing foreign reserves to an increase in net government payments as well as an increase in foreign currency sales to the commercial banks.
“We continue to believe that foreign reserves will remain under pressure. Apart from the financial strain faced by the Angolan economy, we believe that the Strong Rand (weaker USD) will affect the value of foreign reserves,” BoN explained.
Meanwhile, the statistics released show that, total Namibian debt (comprising of domestic and foreign government, corporate and household debt) grew significantly by 30.6% year-on-year compared to a growth rate of 16.1% recorded in the prior year.
Furthermore, the central bank said the Private sector debt also rose by 12.1% year-on-year compared to 11.1 % year-on year recorded during May 2016, albeit still at a slower pace when compared to a 14.7% year-on-year recorded in the prior year.