ACCORDING to the press, the Bank of Namibia is holding N$2,5 billion worth of the Angolan kwanza, while waiting to exchange this with Angola for US dollars.
How is it then acceptable for Angola in the meantime to devalue the kwanza, so that effectively Namibia loses 40% (N$1,12billion) in value of the amount it held.
When Namibia agreed to this scheme, did the possibility of this happening not occur to the BoN?
The bank can deny the liquidity crisis, but what other explanation can there be?
Surely, no one would ever enter into an agreement which allows one party an easy way to simply reduce the amount that has to be repaid without the other party having any recourse?
This shows how reckless the government is with our money.
King of the Coast
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