Guest Contributor | Nov 5, 2019 | 0
Banking liquidity for commercial banks decreased to N$3 billion in September
The liquidity balances of commercial banks decreased by 18.2% to an average level of N$3 billion in September 2019, the Bank of Namibia said.
According to the central bank, this decline in liquidity is as a result of lower domestic government spending mainly ascribed to lower economic activity coupled with higher foreign currency outflows as a result of import payments during the review period.
Furthermore, credit extended to the private sector rose moderately to 6.5% at the end of September, from 6.4% in August, this rising growth emanated from an increase in demand for credit by both the household and business sectors during the period under review.
Meanwhile, Namibia’s annual inflation rate stood at 3.3% in September, declining by a meagre 0.4% from a month earlier. The main contributors that lead to the decline in the overall inflation were transport, alcohol and tobacco as well as services.