Bank of Namibia Bill tabled in National Assembly

27 Mar 2019 15:50pm
WINDHOEK, 27 MAR (NAMPA) – Minister of Finance, Calle Schlettwein on Tuesday tabled the Bank of Namibia Bill of 2019 in the National Assembly (NA).
The Bill provides for the central bank of Namibia to serve as the State’s principal instrument to control money supply, currency and institutions’ finance in the country.
It also strengthens the independence of the central bank in line with the Southern African Development Community (SADC) Model Central Law, which stipulates that its board members shall execute their functions without interference from any person, institution or authority.
The Bill was drafted in line with the SADC Model Central Law, which promotes key principles that will ensure the operational independence of the bank with the financial policy determination vested in the finance minister.
Explaining the structure of the Bill in the National Assembly, Schlettwein said it also deals with principles in the development of the central bank legislation, which include operational independence, transparency and accountability provisions aimed at improving efficiency.
Furthermore, the Bank of Namibia’s capital share will increase from N.dollars 100 million to N.dollars 500 million as provided by the Bill.
“This Bill provides a clear legal framework for the Monetary Policy Committee, its composition, publication of its decisions and minutes, as well as clear mandate to formulate its own rules and procedures to be followed at its meetings,” Schlettwein said.
The Bill also empowers the bank to deal effectively with risks and vulnerabilities which are likely to disrupt the financial intermediation process, including the orderly functioning of the money market, foreign exchange market and public confidence in the financial system.
Once passed in the NA, the draft legislation will be forwarded to the National Council where it will be debated before it is referred back to the NA. It will then be forwarded to the President to be signed, after which it will be gazetted as a law.