By: Justicia Shipena

 

Governor of the Bank of Namibia (BoN), Johannes !Gawaxab, says the limited flexibility of Namibia’s fixed currency, which is tied to the South African Rand, in combating inflation.

Namibia recorded an annual inflation rate of 5.4% for January 2024, slightly higher than December 2023’s 5.3% but lower than January 2023’s 7.0%.

!Gawaxab highlighted the central bank’s constrained ability to control inflation despite its commitment to maintaining the currency’s peg to the South African Rand.

“As far as inflation is concerned our currency is fixed. It is pegged to the Rand. We have limited flexibility in fighting inflation,” !Gawaxab said while responding to questions from The Villager during the announcement of the repo rate on Wednesday.

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