WINDHOEK, May 6 — Namibia‘s central bank said on Friday that it plans to start buying gold to strengthen the country’s foreign exchange reserves and hedge against global economic shocks.
The Bank of Namibia (BoN) noted in a statement that the move will see gold making up 3 percent of Namibia‘s net foreign exchange reserves, aligning the country with global central banking trends to improve resilience amid inflationary and financial pressures.
BoN Governor Johannes Gawaxab said the decision is part of broader strategic reforms discussed during a statutory engagement with Namibian President Netumbo Nandi-Ndaitwah. “Gold has strategic value in hedging against inflation and enhancing resilience during economic shocks,” he said.
According to the bank, the foreign reserves declined by 5.2 percent to 59.7 billion Namibian dollars (about 3.2 billion U.S. dollars) in the first quarter of 2025, with current import cover at 3.9 months, or 5.2 months, excluding oil- and gas-related imports that are externally financed.
The central bank warned of risks to Namibia‘s external sector arising from U.S. tariffs and global trade tensions, which could reduce export performance and weaken the local currency.
Namibia‘s economy is projected to grow by 3.8 percent in 2025, supported by mining, construction, trade, and tourism, though forecasts were revised slightly downward due to global uncertainty. (Xinhua)
