!Gawaxab warns of local currency depreciation

THE group CEO of Old Mutual Namibia, Johannes !Gawaxab, recently re-positioned the organisation’s role within the insurance industry as well as the Namibian economy.

Addressing a stakeholders’ meeting in Walvis Bay recently, !Gawaxab emphasised the significant steps that have been taken in terms of transformation, product longevity, industry credibility and sustainability. !Gawaxab also commented on the current state of the local currency.”The volatility of the Namibia dollar is a feature of a flexible exchange system and should be factored into macro-economic and business decision-making.Boosting economic growth and the competitiveness of Namibia on the back of a weak and depreciating Namibia dollar was not sustainable since currency volatility was a natural consequence of a flexible, open economy.”!Gawaxab explained that the Namibian dollar was expected to depreciate towards the year end as the US dollar was expected to be supported by economic data coming out of the US showing continued strong growth.He said, “The Namibia dollar has surged more than 70% against the US dollar after falling to 13.85 to the USD in 2001.The local currency is set to consolidate around the current levels and should be trading in the N$6.40-7.50 range against the USD over the short term.”The strength of the Namibia dollar is linked to the weakness in the US dollar which is driven lower by high oil prices, geo-political tension and the US current account deficit which accounts for about 5% of the Gross Domestic Product.”!Gawaxab also commented on the current state of the local currency.”The volatility of the Namibia dollar is a feature of a flexible exchange system and should be factored into macro-economic and business decision-making.Boosting economic growth and the competitiveness of Namibia on the back of a weak and depreciating Namibia dollar was not sustainable since currency volatility was a natural consequence of a flexible, open economy.”!Gawaxab explained that the Namibian dollar was expected to depreciate towards the year end as the US dollar was expected to be supported by economic data coming out of the US showing continued strong growth.He said, “The Namibia dollar has surged more than 70% against the US dollar after falling to 13.85 to the USD in 2001.The local currency is set to consolidate around the current levels and should be trading in the N$6.40-7.50 range against the USD over the short term.”The strength of the Namibia dollar is linked to the weakness in the US dollar which is driven lower by high oil prices, geo-political tension and the US current account deficit which accounts for about 5% of the Gross Domestic Product.”