…as N$5.24 billion is recorded in 2023
During the 2023 financial year, the Bank of Namibia recorded a significant increase in the currency in circulation compared to the previous financial year. The value of currency in circulation increased from N$4.87 billion in 2022 to N$5.24 billion in 2023, equating to an increase of 7.6 percent, the highest ever recorded in the history of the Bank.
The Bank said that it ensured that its mandate of currency provision was effectively executed by supplying the Namibian market with high quality banknotes and coins during the review period.
“Despite the continued importance of cash, the shares of cashless payments (electronic payments) are increasing, with electronic funds transfers (EFTs) rising by 10 percent in 2023, albeit a lower rate of growth than the 12 percent increase recorded in 2022.
“The high growth rate in EFT transactions points to the gradual evolution towards electronic money. In this regard, and in keeping with its modernisation drive, the Bank continually assesses the ecosystem with the intention of innovating and enhancing current offerings and bridging the financial inclusion gap,” Governor of the Bank of Namibia, Johannes Gawaxab said in its Annual Report for 2023.
For this reason, the Bank is deliberately trying to study the appropriateness and relevance of a Central Bank Digital Currency (CBDC) for Namibia, while building up the necessary skills and institutional capacity.
“Given the Common Monetary Area (CMA) realities, the Bank will continue its collaboration within the CMA towards developing, as far as possible, a common view and approach on CBDCs that will optimally serve all the CMA countries,” added Gawaxab.