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Liquidity position of the banking industry declined during December 2019

Liquidity position of the banking industry declined during December 2019

Liquidity balances held by commercial banks declined by 48.5% month-on-month to an average level of N$948.3 million in December 2019, according to the Bank of Namibia.

The decline in cash positions of the banks is partly a result of corporate tax payments to the government as well as banks long positions in liquid assets (particularly treasury bills).

Meanwhile, Namibia’s annual inflation rate stood at 2.6% in December 2019, increasing by a 0.1% from a month earlier.

According the central bank, the main contributors to the slight increase in inflation were mainly education, transport recreation and culture, health as well as alcoholic beverages and tobacco.


About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys