BoN hands over N$68 million dividend
The Bank of Namibia (BoN) has paid a dividend of N$68 million to the treasury for its recently concluded financial year, marking an improvement in financial performance.
According to BoN governor Ipumbu Shiimi, the central bank's financial performance showed an improved in 2016 when compared to the previous financial year. An improvement in the interest-rate environment in certain capital markets also resulted in higher returns on the BoN's investment portfolios.
Speaking at the dividend handover, Shiimi said: “This, coupled with a revised investment strategy which focused on investments in specific markets, further contributed to the improved financial performance.”
In other market developments, Shiimi noted that economic growth had slowed in 2016, mainly attributable to contractions in mining and construction activities.
“Whereas earlier estimates by the BoN suggested a growth rate of 1% in 2016, preliminary data released by the Namibia Statistics Agency confirmed that Gross Domestic Product growth in the domestic economy slowed to 0.2% in 2016, from 6.1% in the previous year. “The sluggish performance was mainly attributed to the decline in the public sector. The severe drought also negatively impacted the agricultural sector, water subsector and the overall performance of the economy.” The average inflation rate increased significantly during 2016. “The inflation rate averaged 6.7% in 2016, higher than the 3.4% registered for 2015. The increase in the overall inflation rate partly reflected higher inflation for housing, water, electricity, gas and other fuels, which is the largest contributor in the Consumer Price Index,” Shiimi said. International reserves also rose in 2016 and remained sufficient to sustain the one-to-one currency peg to the South African rand. “The level of international reserves increased by 4.8% to N$24.7 billion at the end of 2016, from N$23.6 billion one year earlier. The latest value is 5.6 times the value of currency in circulation, supporting the reserve adequacy ratio as per the one-to-one link.
“This level of reserves resulted in an improved import cover of 2.9 months in 2016, from 2.8 months in 2015, and was marginally lower than the international benchmark of 3 months,” said Shiimi.
“Namibia's financial system in general and the banking sector in particular remained sound during 2016. This performance was supported by the adequate levels of capital, higher than the minimum threshold set by the BoN.”
STAFF REPORTER
According to BoN governor Ipumbu Shiimi, the central bank's financial performance showed an improved in 2016 when compared to the previous financial year. An improvement in the interest-rate environment in certain capital markets also resulted in higher returns on the BoN's investment portfolios.
Speaking at the dividend handover, Shiimi said: “This, coupled with a revised investment strategy which focused on investments in specific markets, further contributed to the improved financial performance.”
In other market developments, Shiimi noted that economic growth had slowed in 2016, mainly attributable to contractions in mining and construction activities.
“Whereas earlier estimates by the BoN suggested a growth rate of 1% in 2016, preliminary data released by the Namibia Statistics Agency confirmed that Gross Domestic Product growth in the domestic economy slowed to 0.2% in 2016, from 6.1% in the previous year. “The sluggish performance was mainly attributed to the decline in the public sector. The severe drought also negatively impacted the agricultural sector, water subsector and the overall performance of the economy.” The average inflation rate increased significantly during 2016. “The inflation rate averaged 6.7% in 2016, higher than the 3.4% registered for 2015. The increase in the overall inflation rate partly reflected higher inflation for housing, water, electricity, gas and other fuels, which is the largest contributor in the Consumer Price Index,” Shiimi said. International reserves also rose in 2016 and remained sufficient to sustain the one-to-one currency peg to the South African rand. “The level of international reserves increased by 4.8% to N$24.7 billion at the end of 2016, from N$23.6 billion one year earlier. The latest value is 5.6 times the value of currency in circulation, supporting the reserve adequacy ratio as per the one-to-one link.
“This level of reserves resulted in an improved import cover of 2.9 months in 2016, from 2.8 months in 2015, and was marginally lower than the international benchmark of 3 months,” said Shiimi.
“Namibia's financial system in general and the banking sector in particular remained sound during 2016. This performance was supported by the adequate levels of capital, higher than the minimum threshold set by the BoN.”
STAFF REPORTER
Comments
Namibian Sun
No comments have been left on this article