The Bankers’ Association of Namibia (BAN) has taken note of a general perception in the market of an apparent shortage of foreign currency cash, with an emphasis on US Dollar notes. Lionel Matthews, the Chairperson of BAN, says this is certainly not the case.
“The issue is rather that the availability of specific denominations of USD notes being requested by our respective customers has come under strain as a consequence of customer-specific preferences,” said Matthews.
“Our country’s commercial banks have sufficient foreign exchange cash, including US dollars, to adequately meet the demand.” BAN member banks and the Bank of Namibia have been engaged in discussions to address this matter.
As a key business imperative, commercial banks maintain sufficient stock levels of foreign currency based on the expected demand. Excess stock levels are both impractical and inefficient from a cost perspective. Matthews advised customers to provide their banks with prior notification in the event that transactions involving significant amounts of foreign currency are required.