CHAMWE KAIRA
The stock of international reserves increased at the end of December by 3.6% to N$63 billion compared to N$60.8 billion recorded at the end of November.
The central bank said the increase was primarily driven by higher commercial bank inflows, as well as revaluation gains. The import cover stood at 4.2 months of imports, whereas imports excluding oil and appraisal activities translated into 5.1 months of imports.
“The stock of foreign reserves was 11.2 times the value of N$5.6 billion of currency in circulation and remained adequate to sustain the currency peg between the Namibia dollar and South African rand,” the central bank said.
Annual growth in broad money supply decreased to 9.7% in December, from 11.6% in November. The central bank said the slowdown in the growth of the money supply was due to a decrease in the growth of net foreign assets of the depository corporations.
Annual growth in private sector credit extension reached its yearly peak in December and rose to 4% in December 2024, higher than the 3.3% recorded in November.
“This is both the highest growth recorded in 2024 and the highest since March 2023. The increase in growth for PSCE emanated from increased uptake by businesses, whereas growth in credit to households remained constant,” the central bank said.
Growth in credit extended to businesses increased in December. The annual growth in business credit reached its peak in 2024 at 5.4% in December, up from 3.6% recorded in the preceding month.
The central bank said growth in household credit remained constant at 3.1% in December, similar to the rate recorded in November. It said while growth in mortgage credit declined, an increase was observed in installment sales and leasing credit and other loans and advances.
The central bank said annual growth in overdraft credit stood at -6% in December relative to -6.9% in November, as businesses continued to settle their overdraft balances.
The central bank said mortgage credit rose to 0.6% in December, owed to the household sector.
“The liquidity position of the banking industry averaged N$8.3 billion in December 2024, slightly higher than N$8.1 billion recorded in November 2024. This reflects an increase of N$140 million, primarily attributable to higher diamond sales,” the central bank said.
The overall inflation rate stood at 3.4% in December, higher than the 3% recorded in November.
“The increase was reflected in food and non-alcoholic beverages and transport inflation, whereas housing inflation remained unchanged during the review period.”
