Central bank hosts inaugural monetary policy strategy session
The Bank of Namibia recently concluded its inaugural Monetary Policy Strategy Session, marking a significant milestone aimed at strengthening the understanding and implementation of monetary policy within the country.
Held on 15 February, the session brought together key stakeholders, including members of the Bank’s Monetary Policy Committee (MPC), Board members, and essential staff.
The primary objective of this landmark session was to educate and sensitize participants on the intricate process of formulating monetary policy at the Bank of Namibia. Drawing insights from esteemed sister central banks such as the South African Reserve Bank (SARB) and the Bank of Botswana, as well as international experts, the event provided a comprehensive platform for discussion and learning.
Dr. Chris Loewald, Head of Economic Research at the SARB, shared invaluable insights into South Africa’s monetary policy process, offering a nuanced understanding of managing inflation and fostering economic stability. Dr. Masalila, Deputy Governor of the Bank of Botswana, emphasized the importance of transparency and effective communication in shaping monetary policy decisions, shedding light on Botswana’s successful monetary policy framework and exchange rate regime.
In a thought-provoking session, Prof. Ricardo Hausmann, Founder and Director of Harvard’s Growth Lab, delved into international experiences surrounding currency pegs, highlighting the perils associated with unsustainable currency pegs and the printing of money as catalysts for economic turmoil. Prof. Martin Grandes, Professor of Economics at the University of Buenos Aires, further enriched the discussion by exploring intricate considerations in selecting an optimal exchange rate regime.
The Monetary Policy Strategy Session provided a platform for robust discussions on the past, present, and future of monetary policy in Namibia. Participants engaged in critical dialogue surrounding challenges and opportunities, with a keen focus on enhancing the efficacy of monetary policy instruments and frameworks.
Johannes !Gawaxab, Governor of the Bank of Namibia, commended participants for their active engagement, reiterating the Bank’s commitment to maintaining price stability and fostering sustainable economic growth.
!Gawaxab emphasized the significance of navigating the nation’s monetary policy amid challenges such as geopolitical tensions, inflationary pressures, disruptive technologies, and climatic swings. He highlighted the Bank’s commitment to leveraging collective expertise and insights to ensure adaptive and responsive monetary policy, fostering macroeconomic stability and sustainable economic growth for all Namibians.
The engagement also provided an opportunity for the Bank to reemphasize its view that the benefits of the current exchange rate regime outweigh the costs, affirming its commitment to safeguarding the one-to-one link between the Namibia Dollar and the South African Rand.
