REPUBLIC OF NAMIBIA
WINDHOEK - 20 June 2005
No. 101 Directive under the Bank of Namibia Act, 1997 (Act No. 15 of 1997) (As amended) ........
BANK OF NAMIBIA
DIRECTIVE UNDER THE BANK OF NAMIBIA ACT, 1997
(ACT NO. 15 OF 1997) (AS AMENDED)
In my capacity as Chairperson of the Board of the Bank of Namibia, and under the
powers vested in the Board by virtue of section 59(2) of the Bank of Namibia Act, 1997
(Act No. 15 of 1997), as amended by the Bank of Namibia Amendment Act, 2004 (Act
No. 11 of 2004), I hereby issue the Directive on the Minimum Reserve Requirement
(BON-D 1/2005) as contemplated in section 35 of the Act.
Windhoek, 30 May 2005
THE MINIMUM RESERVE REQUIREMENT
Section 35 of the Bank of Namibia Act, 1997 (Act No. 15 of 1997) as amended, (hereinafter
“the Act”) allows the Bank to use minimum reserve balances as a monetary policy
instrument. Further amendments are made in view of the fact that the Namibia Interbank
Settlement System (NISS) has been enhanced to record and maintain the required, actual
or current balances on the Reserve Account of each banking institution.
The Bank regards the minimum reserve requirement as a monetary policy instrument
that may be adjusted from time to time based on conscious monetary policy decisions.