Current account registers a deficit of N$1.1 billion during third quarter of 2019
The current account registered a deficit of N$1.1 billion during the third quarter of 2019, compared to the N$1.3 billion recorded in the corresponding period of 2018, the Bank of Namibia said in a statement.
The moderate improvement in the current account deficit during the period under review was primarily due to a smaller merchandise trade deficit, coupled with increased inflows on the secondary income account due to higher SACU receipts.
Meanwhile, the country’s International Investment Position recorded a lower net liability position over the same period, as foreign assets rose faster than foreign liabilities, while the stock of international reserves edged lower in the year to the third quarter of 2019, partly due to higher government foreign payments.
“Given lower imports, the level of import cover of the reserves stood at 4.3 months at the end of the quarter under review, compared to 4.2 months a year ago, both of which were above the international benchmark of 3.0 months,” the central bank stated.
Furthermore, the Namibia dollar appreciated moderately against the Pound and Euro over the year to the third quarter of 2019 although it depreciated against the US dollar over this period.