Liquidity of commercial banks decrease by N$300 million
Cash balances held by local commercial banks averaged N$6.2 billion in August 2022, depicting a decrease of N$300 million from the previous month.
In July 2022, the overall liquidity position of the banking industry stood at N$6.5 billion, according to the Bank of Namibia’s latest data.
“The month-on-month decreases in the market cash positions are partly attributed to other financial corporations’ withdrawals during the review period,” the central bank stated.
Meanwhile, growth in broad money supply (M2) slowed significantly to 4% percent in August 2022 compared to 11% in July 2022.
The decrease in money supply was due to a decline in both the net foreign assets and domestic claims of the depository corporations.
“The decline in M2 growth was further reflected by a decrease in transferable deposits coupled with a contraction in other deposits over the review period,” the central bank noted.
