Foreign reserves up N$3.9bn
Ndama Nakashole - After three months of decreasing levels, foreign reserves picked up in April, the money and banking statistics from the Bank of Namibia (BoN) showed on Friday.
BoN statistics show that foreign reserves rose to nearly N$30.7 billion during the month under review, up from the approximately N$26.8 billion recorded in March.
The N$3.9 billion increase in one month is attributed to the inflow of receipts from the Southern African Customs Union (SACU).
Other attributions for the increase is commercial banks’ sales of foreign currency, increased rand seignorage (profit made by governments by issuing currency), as well as the depreciation of the Namibia dollar against major currencies during the period of April.
April became the first month of 2018 that the country’s foreign reserves recorded an increase. The last time it rose was in December 2017, when it increased to N$29.7 billion from the preceding month’s value of N$28.5 billion. The previous increase was attributed to the disbursement of the African Development Bank (AfDB) loan.
The current rise is bigger, as it surpasses the monthly rise of N$1.2 billion that was recorded in December 2017, as well as covering the three-month drops to rise to the level higher than December’s.
Currency
According to the central bank, the depreciation of the Namibia dollar against major currencies is one of the reasons for the rise in international reserves observed in April.
Information from BoN shows that the Namibia dollar was weaker at 12.30 against the US dollar at the end of April compared to a stronger value of 11.75 the preceding month.
The local currency also depreciated against the British pound when it traded at 16.97 at the end of April, which is higher than the 16.57 recorded the month before.
The Namibia dollar further depreciated against the euro at 14.93 as compared to March’s 14.49.
However, the Namibia dollar appreciated against the Japanese yen, which is one of the major currencies, as it traded at 8.86 at the end of April as compared to 9.06 in March.
BoN statistics show that foreign reserves rose to nearly N$30.7 billion during the month under review, up from the approximately N$26.8 billion recorded in March.
The N$3.9 billion increase in one month is attributed to the inflow of receipts from the Southern African Customs Union (SACU).
Other attributions for the increase is commercial banks’ sales of foreign currency, increased rand seignorage (profit made by governments by issuing currency), as well as the depreciation of the Namibia dollar against major currencies during the period of April.
April became the first month of 2018 that the country’s foreign reserves recorded an increase. The last time it rose was in December 2017, when it increased to N$29.7 billion from the preceding month’s value of N$28.5 billion. The previous increase was attributed to the disbursement of the African Development Bank (AfDB) loan.
The current rise is bigger, as it surpasses the monthly rise of N$1.2 billion that was recorded in December 2017, as well as covering the three-month drops to rise to the level higher than December’s.
Currency
According to the central bank, the depreciation of the Namibia dollar against major currencies is one of the reasons for the rise in international reserves observed in April.
Information from BoN shows that the Namibia dollar was weaker at 12.30 against the US dollar at the end of April compared to a stronger value of 11.75 the preceding month.
The local currency also depreciated against the British pound when it traded at 16.97 at the end of April, which is higher than the 16.57 recorded the month before.
The Namibia dollar further depreciated against the euro at 14.93 as compared to March’s 14.49.
However, the Namibia dollar appreciated against the Japanese yen, which is one of the major currencies, as it traded at 8.86 at the end of April as compared to 9.06 in March.
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