Banks

Namibia’s central bank has maintained the repo rate unchanged at 6.75 percent, a decision taken following a review of global, regional and domestic economic and financial developments, according to the Governor of Bank of Namibia, Iipumbu Shiimi on Wednesday.

At an announcement on Wednesday, Shiimi told the media that the decision was further considered in order to safeguard the foreign reserves and support domestic economic growth, while maintaining the one-one link between the Namibia dollar and the South African rand.

According to Shimii as of May 31, Namibia’s official stock of international reserves stood at 2.15 billion U.S. dollars (28.1 billion Namibia dollars), representing a decline of 199.2 million dollars on a monthly basis.

“At this level, the stock of international reserves is projected to cover 4.7 months of imports of goods and services. Although reserves remain sufficient to sustain the currency peg between the Namibia dollar and the South African rand, it is relatively low compared to Namibia’s peers in the region,” he added.

Meanwhile, Shiimi said that the domestic economic activity remained slow during the first four months of 2018, despite improvements in some key sectors.

“This slow activity was largely reflected in the wholesale and retail trade and fishing sectors. The mining, agriculture, as well as transport and communication sectors, however, performed positively, despite the slow economic activity for the first four months,” he added.

According to Shiimi, the Namibian economy is expected to perform slightly better in 2018 compared to 2017. Enditem

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