Foreign reserves dip in line with stronger Namibia Dollar
The level of international reserves decreased to N$29.5 billion at the end of November 2018 from N$31.1 billion recorded in the previous month, the Bank of Namibia’s latest Money and Banking Statistics report shows.
According to the central bank, this decrease is mainly due to net capital outflows from the commercial banks as a result of increased foreign currency purchases coupled with net government payments and the exchange rate appreciation.
Looking ahead, PSG Wealth Management said that inflows from SACU are expected to be weaker than in recent years due to the lacklustre performance of the South African economy, which shrinks the SACU revenue pool. However, the firm noted that inflows from the African Development Bank loan agreement will continue to boost foreign reserves this year.
“In general, the growth in monetary aggregates is well below levels seen during the economic boom years of 2010 to 2015 and suggests that real GDP growth remains sluggish,” PSG added.
