Staff Writer
International reserves fell to N$51.7 billion at the end of February, according to the Bank of Namibia.
The decline of 0.3% from January was driven by net outflows of South African rand and withdrawals of foreign currency by customers.
Despite the drop, reserves remained adequate. They provided import cover of 3.3 months, or 3.7 months when excluding oil and gas-related imports.
The reserves were also equal to about 9.8 times the currency in circulation, supporting the Namibian dollar’s peg to the South African rand and the country’s ability to meet short-term obligations.
At the same time, banking sector liquidity improved. Average cash balances rose by 39% to N$6.3 billion in February.
The increase was supported by investment inflows, government spending and revenue from diamond sales.
Credit growth remained steady. Mortgage lending increased by 0.2% in February, up from 0.1% in January.
Household mortgage lending rose by 0.4%, supported by lower interest rates. Credit to businesses in the mortgage segment continued to decline for the sixteenth month.
Vehicle sales also increased. Annual growth in new vehicle sales rose to 4.1% in February from 4% in January.
A total of 1 163 vehicles were sold, up from 1 005 in January and 1 117 in February 2025. Demand improved for both passenger and commercial vehicles.
Private sector credit extension grew to N$123.2 billion in February. This reflects annual growth of 4.7%, up from 4.2% in January.
The increase was driven by higher borrowing by businesses, while household credit growth slowed slightly.
