Namibia: Central Bank Quashes Global Finance Central Banker’s Report

The Bank of Namibia (BoN) has noted with grave concern the inconsistency in the rating and subsequent reports stemming from the subjectivity of the interpretations of the ratings, that were assigned to the governor, Johannes !Gawaxab .

The recently released Global Finance bankers reports suggested !Gawaxab has performed poorly and thus the central bank in response stated that these reports and the conclusions thereof appear fundamentally flawed.

“For example, an attempt to correlate the actions of the central bank and the performance of the governor, to the overall macroeconomic conditions in the country is inaccurate and highly misleading as the Bank is restricted to its role of ensuring monetary and financial stability,” BoN Deputy Director: Corporate Communications, Kazembire Zemburuka said in a statement.

“Also, to the contrary, it is common cause that Namibia’s macroeconomic stability has been tested during the preceding two years due to the Covid-19 pandemic. During such difficult economic times, confidence tends to be affected negatively. Notwithstanding the unprecedented shocks on the economy and financial institutions, Namibia has emerged relatively resilient thanks to the prompt measures undertaken by key stakeholders, including the Bank of Namibia. These measures were taken to maintain credit flow and to ensure that the domestic market was liquid – conditions essential in averting a crisis and a deeper recession,” he added.

According to Zemburuka, the rating does not invalidate the significant contributions of the monetary authority during the past 19 months. The decisions taken have effectively stabilised the system and provided a solid foundation for economic agents and authorities, to build on, in continuous efforts to recover the economy.

“We remain confident that the bold measures undertaken, including maintaining accommodative stance at the last MPC meeting and further extension of the relief measures, have been appropriate given the economic conditions prevailing at the time, even with the benefit of hindsight,” he said.