Capital outflows to SA at N$10bn compared to N$18bn last year
Capital outflows from Namibia to South Africa stood at about N$10 billion year-to-date, compared with N$18 billion during the corresponding period last year, Bank of Namibia, governor Ebson Uanguta has revealed.
CHAMWE KAIRA
Capital outflows from Namibia to South Africa stood at about N$10 billion year-to-date, compared with N$18 billion during the corresponding period last year, Bank of Namibia, governor Ebson Uanguta has revealed.
He added that the bank has not formally established a specific threshold for the interest rate differential it needs to maintain with South Africa, but warned that a widening gap could increase capital outflows and put pressure on the country’s foreign reserves and currency peg.
The central bank said it closely monitors capital flows when assessing the appropriate policy stance, particularly as Namibia’s economy faces subdued economic activity.
