The Bank of Namibia’s stock of international reserves declined in October. The stock of international reserves declined by 4.4 percent month-month to N$51.4 billion at the end of October, relative to N$53.8 billion in September.
“The decline is attributable to higher commercial bank outflows as a result of higher import bills. The foreign reserves translated into 5.3 months of import cover, continuing to remain above the international benchmark of three months and adequate to support the Namibia Dollar and the South African Rand currency peg,” the central bank said.
Growth in private sector credit extension (PSCE) rose moderately at the end of October. On an annual basis growth in PSCE edged up to 1.8 percent at the end of October 2023, from 1.6 percent in September.
“The slight increase in the growth of PSCE emanated from an increase in overdraft credit mainly by household sector during the review period. In contrast, credit extended to the business sector continued to decline,” the central bank said.
Money supply (M2) growth tilted up at the end of October. The annual growth in M2 rose to 10.1 percent at the end of October 2023, higher than the 7.9 percent at the end of September.
The central bank said the overall banking industry cash balances increased slightly in October. The overall liquidity position of the banking industry increased to an average of N$7.5 billion in October, relative to the N$7.4 billion registered in September.
Headline inflation increased in October. On an annual basis, overall inflation rose to 6 percent in October, compared to 5.4 percent recorded in September.
“The increase in inflation mainly stemmed from an increase in transport and housing inflation. This is due to an upward adjustment in pump prices, emanating from soaring international crude oil prices. In addition, the increase in housing inflation was attributed to a rise in the inflation for electricity gas and other fuels during October,” the central bank said.
