This benefit is attributed to the fact by fixing the
Namibian Dollar to the Rand; Namibia imports low and stable prices from South Africa, and hence, delinking might compromise this benefit and lead to high inflation.
First International
Namibian Dollar bond issue, first non-domestic issuer
The
Namibian dollar, Lesotho's maluti, and Swaziland's lilangeni are all pegged to and rise and fall in line with the rand.
The
Namibian Dollar has depreciated by about 18% to the US Dollar since the beginning of this year.
Importers, however, were constrained by higher financing costs, the depreciation of the
Namibian dollar and weak domestic demand.
More records can be noted in the books of the swakara industry, with the highest average price in
Namibian Dollar ever paid for swakara pelts and the highest price in
Namibian Dollar ever for a lot of white pelts at the April pelt auction in Copenhagen.
Yet this is still better than the 45% fall in the local index of the NSE last year further compounded for foreign investors by the steep depreciation of the
Namibian dollar against the US dollar last year.
In the case of Namibia the depreciating
Namibian dollar may hopefully improve export earnings this year.
The impact in Namibia can be attributed mainly to the depreciating value of the
Namibian dollar.
The results were achieved despite an increase in operating costs attributed mainly to the depreciation of the
Namibian dollar against the Euro and the US$ and the high sin tax of up to 40% imposed by the Botswana Government, a key export market.
It follows that the
Namibian dollar has depreciated in value against the US dollar.
Hanekom also had high praise for the stability of the new
Namibian dollar, which was introduced last September.
