CHAMWE KAIRA
The Bank of Namibia’s stock of international reserves decreased by 3,7% to N$57.1 billion at the end of September, the central bank announced.
The decrease in international reserves was mainly due to Customer Foreign Currency (CFC) withdrawals and higher net commercial banks outflows which was driven by high foreign payments by customers.
This level of foreign reserves translated into 3,9 months of import cover, exceeding the international benchmark of three months. Notably, the import cover, excluding imports of oil exploration and appraisal activities, stood at 4,6 months at the end of September, relative to 4,8 months recorded at the end of August.
The overall liquidity level of the banking industry stood at N$5,9 billion in September, slightly higher than N$5,7 billion recorded in August. The increase in liquidity levels for the month was mainly attributable to diamond sale proceeds.
Growth in mortgage credit stood at 0,9% at the end of September, slightly higher than 0.7% registered at the end of August. The slight uptick was supported by corporations whose mortgage credit registered positive growth following a contraction since September 2022, the central bank said.
Growth in instalment and leasing stood at 14,7% at the end of September, higher than 13.9% recorded at the end of August. The growth was due to an uptake by both households and corporations.
Growth in other loans and advances rose to 7,5% at the end of September, relative to 7,1% recorded at the end of August, emanating from an increase in uptake by the household sector.
Growth in credit extended to households recorded its highest growth since the beginning of the year, at 2,9% at the end of September, relative to 2,1% at the end of August.
The growth was observed in the categories, instalment sales and leasing, and other loans and advances.
The annual growth in business credit rose for the fourth consecutive month, recording an annual growth of 3,3% at the end of September, relative to 2,1% at the end of August.
“Uptake in business loans was observed in all categories, including mortgage credit, which recorded positive growth for the first time in 24 months,” the central bank said.
Growth in Private Sector Credit Extension (PSCE) increased at the end of September for the third consecutive month to 3% in September, higher than 2,1% recorded at the end of August.
“The annual growth in PSCE resulted from an increase in uptake of credit by both businesses and households, partly attributed to easing monetary conditions,” the central bank said.
Annual growth in broad money supply (M2) increased to 9,8% at the end of September, higher than 7,8% recorded at the end of August. The central bank said the growth in M2 resulted from domestic claims, which registered growth of 2,9 %, relative to 0,7% at the end of August.