Foreign reserves dip by N$4 billion
The stock of international reserves are projected to cover 3.8 months of imports of goods and services, said the Bank of Namibia Governor, Ipumbu Shiimi this week.
Although reserves remain sufficient to sustain the currency peg between the Namibia Dollar and the South African Rand, Shiimi at a media briefing in Windhoek said the reserves are relatively low compared to other countries in the region.
According to Shiimi, the country’s official stock of international reserves as of 31 March.31 stood at N$21,6 billion, representing a decline of N$4.1 billion since the end of December 2017.
Meanwhile he said that the government budget delivered in March, 2018 provided for further narrowing of the fiscal deficit to a level of 4.5% of Gross Domestic Product in 2018/19.
“The Monetary Policy Committee welcomed the ongoing fiscal consolidation measures, as these could have a positive impact on the level of foreign reserves going forward,” he added.