The stock of foreign reserves declined at the end of January 2018 by N$1.8 billion to reach N$28.3 billion, central bank’s money and banking statistics can reveal.
The decline in the level of reserves was due to maturities of foreign currency investments held with the central bank during the period under review.
At the same time, growth in total private sector credit extension (PSCE) edged up at the end of January 2018 on an annual basis to 5.7 percent increasing by 0.6 percentage points compared to the previous month.
Similarly, growth in total credit extended to individuals increased at the end of January 2018.
Year-on-year, growth in credit extended to individuals rose to 7.4 percent from 6.7 percent recorded in the previous month.
“The growth is evident across most credit categories, specifically in overdraft credit which grew by 3.6 percentage points to reach 7.2 percent at the end of January 2018. It is worth noting that mortgage loans, the largest credit category in the individual sector, remained at 7.8 percent at the end of January 2018,” says the bank.
Meanwhile, Namibia’s overall inflation rate decelerated to 3.6 percent during January 2018 mainly driven by reduced inflation in the housing category supported by smaller declines in furnishings, transport, and food and non-alcoholic beverages.
On commercial banks, the overall liquidity position decreased significantly during January 2018 by N$1.2 billion on a monthly basis, to N$1.9 billion during January 2018.