Banking liquidity increases to N$2.8 billion in December 2018
The liquidity position of commercial banks rose to N$2.8 billion in December 2018, up from the N$2.3 billion recorded at the end of November 2018, the Bank of Namibia stated.
This slight improvement was due to increased foreign currency inflows for corporate tax payments to the government in December 2018. Earlier in October 2018, the liquidity position of commercial banks declined to N$3.4 billion, down from N$4.8 billion at the end of September 2018.
Furthermore, the stock of international reserves held by the Bank of Namibia rose on a monthly basis at the end of December 2018, increasing by 4.7%, month-on-month to N$30.9 billion at the end of December 2018.
“The monthly increases in reserves was partly on account of the disbursement of the second tranche of the African Development Bank loan in December 2018,” the central bank said.
Meanwhile, the central bank reported that the annual growth in total credit extended to the private sector stood at 6.7% at the end of December 2018, decreasing by 0.6% month-on-month. The slower growth in PSCE was mainly driven by a lower demand for credit by both the household and business sectors, but more predominantly the in latter during the period under review.