Almandro Jansen explains what Namibia’s liquidity surge and falling reserves mean for the economy

Namibia’s banking sector liquidity saw a sharp increase in August, rising to an average of N$8.1 billion from N$5.8 billion in July. Simonis Storm notes that this surge was largely driven by inflows from diamond sales offering much needed relief after tighter funding conditions earlier this year.

However while domestic liquidity improved the Bank of Namibia’s international reserves fell by nearly 2% to N$57 billion, reflecting ongoing fiscal and external pressures.

To unpack what these shifts mean for the broader economy  from liquidity trends to inflation outlooks  Simonis Storm Junior Economist Jansen spoke to Desert FM.