This rate, BoN said is deemed appropriate to continue supporting domestic economic growth, while maintaining the one-to-one link between the Namibia Dollar and the South African Rand.
BoN’s Deputy Governor Ebson Uanguta noted the decision was also taken to support the local economy.
He said the domestic economy remained weak in 2018 with an estimated further slight decline in real GDP, following negative growth of 0.9 percent recorded in 2017.
“The weak outcome in 2018 was mainly due to declining economic activity in sectors such as agriculture and wholesale and retail trade.
“Other sectors, including mining, transport and communication as well as manufacturing improved during the same period.
“The domestic economy is projected to record positive growth in 2019,” Uanguta said.
Currently, the stock of international reserves declined to N$30.7 billion ($2.23 billion), from N$31.1 billion ($2.25 billion) reported late last year.
“This amount of international reserves is estimated to cover 4.2 months of imports of goods and services. At this level, the reserves are sufficient to protect the peg of the Namibian Dollar to the Rand, as well as meeting the country’s international financial obligations,” Uanguta explained.