Namibia rules out ending rand peg

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Namibia rules out ending rand peg
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The nation’s economy has partly been dragged down by anaemic growth and power shortages in SA

Flavia Krause-JacksonLondon — Namibia is ruling out dropping its currency peg with the rand “unless something very drastic happens”, given its close trade links with its larger neighbour and its drive to recover from recession.

The economy of the world's top producer of marine diamonds has been dragged down partly by anaemic growth in SA. Power shortages in SA have spilled into Namibia, which imports electricity. That prompted calls for a review of the currency arrangement and customs agreement. “We have taken tough actions, painful ones” including cutting back wasteful spending and tackling corruption, Geingob said.

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