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.