Government uses N$1.8 billion overdraft as cash balance drops to zero
via The Namibian4 min read
The Namibian government's cash balance reached zero at the end of May, leading it to utilize an N$1.8 billion overdraft facility to meet its financial obligations. This information comes from the latest statement of assets and liabilities released by the Bank of Namibia BoN. While the government had a negative balance of N$3.23 billion in March, which improved to a N$379.2 million deposit in April, it moved into an overdraft position by May. This overdraft contributed to an increase in the central bank's domestic assets, rising from N$1.21 billion in March to over N$3.37 billion in May. Economist Omu Kakujaha-Matundu stated that the overdraft is not an indication of the government being broke, but rather a result of cash flow timing issues, with the BoN acting as the government's banker. The central bank's international investment holdings increased from N$47.15 billion in March to N$50.92 billion in May, despite a N$2.9 billion decline in May alone, primarily due to movements in foreign currency reserves, including the South African rand and other currencies. Gold holdings, however, nearly doubled, increasing by N$155 million to almost N$320 million by the end of May. Meanwhile, currency in circulation rose by N$400 million, from N$5.42 billion in March to N$5.82 billion by the end of May. Despite these fluctuations, the BoN's overall asset position remained strong at N$65.77 billion.
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This summary was AI-generated from a story originally published by The Namibian.
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