The stock of foreign reserves rose slightly at the end of October, mainly as a result of revenue from the Southern African Customs Union (SACU), latest figures from the Bank of Namibia (BoN) show.
The level of international reserves rose to N$31,6 billion at the end of October, from N$31,4 billion at the end of September. The increase in the level of reserves was mainly due to inflows from SACU receipts, the Bank of Namibia said in its latest money and banking statistics.
Growth in private sector credit extension (PSCE) moderated at the end of October. The annual growth in total PSCE edged lower to 5,2 percent, decreasing by 0,2 percentage points when compared to the previous month.
Growth in total credit extended to individuals moderated to 7,4 percent, decreasing by 0,1 percentage point when compared to the previous month.
“The subdued growth in PSCE was mainly driven by the weak growth in short term credit categories such as other loans and advances and overdraft credit.”
On a nominal basis, overdraft credit extended to businesses stood at N$8,1 billion at the end of October lower than the N$8,7 billion in the previous month.
The annual growth in mortgage credit extended to the private sector tilted up in October with mortgage credit, rising to 8,2 percent, compared to 7,5 percent at the end of the preceding month.
“Notably, mortgage credit has observed a moderate downward trend since the Loan-to-Value (LTV) ratio was introduced to the market in the middle of 2016,” the central bank said.
The overall liquidity position of commercial banks declined somewhat during October. The overall liquidity position declined to N$2, 9 billion at the end of October from N$3, 5 billion at the end of September.
The decrease in the overall liquidity position was as a result of cross border payments done during the month. The October average liquidity position was, however, about N$1, 7 billion higher than the N$1, 1 billion average balance recorded in October 2016.