The Bank of Namibia has revealed that currency in circulation in Namibia has increased by 6.9% in 2024, climbing from N$5.2 billion in 2023 to N$5.6 billion.
Bank of Namibia Governor Johannes !Gawaxab said this growth reflects both the expansion of the national economy and strong public confidence in the domestic currency as a reliable store of value.
Alongside the rise in currency circulation, the central bank reported a 10.7% decrease in counterfeit banknotes, underlining the effectiveness of enhanced security measures.
The announcement was made during the official launch of the modified N$50 banknote in Windhoek.
“Counterfeit deterrence is a matter of public trust and institutional credibility. When citizens know that the currency they hold is secure, they transact with confidence,” !Gawaxab said.
The central bank has spent the last three years upgrading four major denominations, which include the N$10, N$20, N$100, and N$200 and the N$50 note marks the final stage of this effort.
The bank also announced plans for a full review of the national currency, expected to begin in three months.
“Today, we complete this cycle with the unveiling of the modified N$50 banknote. Allow me to take this moment to also inform you of our forthcoming comprehensive review of the national currency,” !Gawaxab said.
The governor emphasized that regular upgrades are part of global best practices, noting that most central banks update their currency designs every six to eight years.
This comes as Namibia last upgraded its notes in 2012, while coins have not been revised since the 1990s.
“Currency design must be dynamic, evolving in tandem with technological advancements and emerging threats,” !Gawaxab added.
With the advancement of technology, the bank has introduced features such as holographic stripes, colour-shifting inks, microtext, tactile elements, and transparent windows to improve security and adaptability across payment systems.
“These innovations send a clear message: our currency is secure and should not be tampered with,” said !Gawaxab.
He added that durability is also central to the bank’s strategy as new materials and advanced alloys are being used to extend the life of notes and coins, thereby addressing issues like negative seigniorage, where production costs exceed face value.
Meanwhile, the upcoming review will evaluate materials and designs that enhance security, durability, and cost-effectiveness.
The initiative, he said, is more than cosmetic, as it is a step toward safeguarding the country’s financial integrity.
Despite the rise of digital payments, the Governor reiterated that cash remains essential, particularly in rural and underserved communities.
The Bank will soon launch an Instant Payment Solution to bridge gaps between physical and digital systems.
“Cash and digital systems can, and must, coexist to serve the diverse needs of our economy. Our strategic focus is on integration, not displacement,” !Gawaxab said.
