Luxury goods imports put pressure on Namibia’s foreign reserves

The Bank of Namibia said Wednesday the high bill caused by the importation of luxury goods continues to exert pressure on the country's international reserves.


In its monetary policy statement, the bank said although there is pressure on the country’s international reserves that stand at 13 billion Namibian dollars (970 million U.S. dollars) as of Monday this week, there was no immediate threat.


“The stock of international reserves remains sufficient to sustain the one-to-one link of the Namibian dollar to the South African Rand, being 3.3 times higher than the currency in circulation at the end of August 2015,” the central bank said.

It also said the country’s annual inflation rate remained low, while the demand for credit strengthened.
According to the bank, the mining sector performance was weak, while some of the risks to the domestic economic outlook were the soft commodity prices and the prevailing drought.

It also cited the slower growth of trade between China and Namibia as one of the risks posed to the domestic economy during the period under review.

The statement said the construction industry and the transport as well as the communication sectors drove the positives on the domestic economy.

“The mining sector however recorded a weaker performance during the review period, compared to the same period in 2014,” the bank further said. Enditem

Source: Xinhua

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