(3 Minutes Read)
Namibian commercial banks saw a significant drop in liquidity during July 2025, with average holdings falling by N$274.98 million to N$5.80 billion, according to the Bank of Namibia (BoN). This marks the lowest liquidity level since September 2024, down from N$6.07 billion in June.
The central bank attributes the month-to-month decline mainly to lingering effects of corporate tax payments that were due at the end of June. “Banking sector liquidity declined in July due to delayed impacts of June’s corporate tax outflows,” the BoN stated.
Currently, Namibia’s reserves provide 3.8 months of import cover. Excluding oil exploration and appraisal, this increases to 4.3 months. As of July-end, total official reserves stood at N$58.09 billion, including N$53.95 billion in foreign currency. Securities made up N$31.92 billion, while currency and deposits held with institutions totalled N$22.04 billion. The country also held N$3.7 million in IMF reserve positions and N$4.13 billion in special drawing rights (SDRs).
Short-term foreign currency obligations remain high, with N$17.34 billion in principal repayments and N$1.89 billion in interest due within a year. Contingent liabilities include principal payments of N$842.7 million and interest of N$599.5 million. Namibia’s reserves are largely maintained in major global currencies such as the US dollar, euro, Chinese yuan, Japanese yen, and British pound, aligning with IMF standards and international payment needs.
Read Also;
Additionally, international reserves declined by N$1.54 billion to N$58.1 billion by the end of July—a 2.6% drop from N$59.6 billion in June. The BoN cited increased net outflows in South African rand (ZAR), linked to portfolio investments abroad, as the primary cause.