The Bank of Namibia (BoN)’s Interbank Settlement System has, for the first time since its inception in 2002, recorded a settlement value of over N$1 trillion in 2021 due to high volumes.
BoN Spokesperson, Kazembire Zemburuka, Thursday said the aggregate settlement value of N$1.050 trillion was the country’s highest in 20 years.
“In this regard, the share of single transactions settled in the Interbank Settlement System ,amounted to N$726.4 billion, which translates to 69 percent of the total value settled. While the retail payment transactions cleared through Namclear were N$323.9 billion, representing 31% of the aggregate value settled,” he said.
BoN said the Electronic Funds Transfer stream was made up of 94.13% of the total retail payment value settled, of which the Enhanced Credits, part of NAMPAY, contributed 52.37% of the total retail payments settled, while the Same day payment stream contributed 36.43%.
“These clearing and settlement operations occur under the auspices of the National Payment System, which advocates for reforms in the payments ecosystem to ensure alignment to best practices. The designation of the Interbank Settlement System as a systemically important Financial Market Infrastructure in line with the requirements of the Principles for Financial Market Infrastructures is another critical development that continues to contribute to the safety, security, efficiency, and cost-effective operations of the NPS,” he said.
Zemburuka said the milestone was achieved by a resilient NPS, which will continue to uphold and ensure financial system modernisation and efficiency, as guaranteed by the central bank’s recently launched Strategic Plan 2022-2024 and the NPS Vision and Strategy 2021- 2025.
“The role of a fully functional and modern payment system in the economy cannot be understated. It propels the meaningful participation of all agents in the economy at large. It remains the Bank of Namibia’s preoccupation to foster a modern, safe and secure national payment system that delivers efficient and effective payment services,” he added.
