By: Hertha Ekandjo
The Bank of Namibia says it plans to maintain the peg between the Namibian dollar and the South African rand, despite revelations of manipulation in the USD/Rand currency pair by certain South African banks.
The scandal, dating back to 2015, coincides with a Bureau for Economic Research (BER) report highlighting the economic challenges faced by middle-income earners in both South Africa and Namibia.
This move aligns with Namibia
The report stated that middle-income employees earning the average salary in South Africa are over R10,000 poorer than they were in 2016, due to inflation, with similar observations in Namibia.
Currency manipulation is an effort to tinker with the value of a nation’s currency using foreign currency exchange rates to boost exports in international trade or reduce its debt interest burden.
Reports of currency manipulation align with SA banks operating in Namibian reporting record profits.
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