Namibia’s international reserves declined to N$59.7 billion at the end of March 2025, down from N$64.3 billion recorded in January, according to the latest figures from the Bank of Namibia (BoN).
Bank Governor Johannes !Gawaxab on Wednesday attributed the drop to increased imports and government-related payments.
“Despite the decrease, the current level translates to an import cover of 3.9 months, which remains sufficient to support the one-to-one currency peg with the South African Rand and meet Namibia’s international financial commitments,” said !Gawaxab.
He further noted that the reserves still exceed the international benchmark of three months’ import cover, highlighting Namibia’s resilience to short-term external shocks.
The decline in reserves comes as the Bank’s Monetary Policy Committee (MPC), following its latest review meeting held on 14 and 15 April, decided to keep the repo rate unchanged at 6.75%.
He said the decision was made in light of ongoing global economic uncertainty, with the central bank aiming to strike a balance between maintaining exchange rate stability and supporting domestic economic activity.
The next MPC meeting is scheduled for 16 and 17 June 2025.
The decision to hold the repo rate steady did not come as a surprise, with analysts who spoke to The Brief having anticipated the move in light of persistent inflationary pressures and heightened global economic uncertainty.
