International reserves increase to N$32.6 billion in March
The Bank of Namibia reported that the level of international reserves increased to N$32.6 billion at the end of March from N$31.6 billion recorded in February following a depreciation by the Namibia dollar of 4.5% month on month to N$14.59/$ at the end of March.
The central bank further noted that broad money supply growth declined to 6.9% year-on-year in March 2019 from 8.9% in the previous month. This decline was underpinned by a reduction in domestic claims on the central government and the growth rate of transferable deposits.
According to PSG Wealth Management, export growth is expected to moderate this year due to the global economic slowdown and lower diamond production.
“On the bright side, inflows from multilateral loans will continue to buttress forex stocks this year. In general, growth in the monetary and credit aggregates is well below levels seen during the economic boom years of 2010-15 and suggests that real GDP growth remains sluggish,” PSG said.
