Bank of Namibia

Statement of Foreign Exchange Reserves of the Bank


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Statement of foreign exchange reserves of the Bank

Throughout the world, most central banks are charged with the responsibility of managing their nation’s gold and foreign exchange reserves; the Bank of Namibia is no exception. Foreign reserves, under a fixed exchange-rate regime, perform the important functions of influencing monetary policy and ensuring financial stability, both of which directly and indirectly guide Namibia’s foreign reserve policy.

The Bank of Namibia is responsible for establishing and maintaining international reserves that consist of certain prescribed external assets, in accordance with section 61 of the Bank of Namibia Act, 2020 (Act No. 1 of 2020).

Reserve assets are held to provide support for the issue of domestic currency, as required in terms of the Bilateral Monetary Agreement between the Governments of the Republic of Namibia and the Republic of South Africa. They are held to enable the funding of international transactions of the country, as stipulated in section 63 of the Bank of Namibia Act, 2020 (Act No. 1 of 2020); they are held to serve additional objectives such as maintaining confidence in the country’s monetary and exchange rate policies, providing the international community with confidence regarding the country’s ability to meet its external obligations; and they are held to ensure the resilience of the domestic economy to external shocks.

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