Reflections on a Foreign Exchange Management and Allocation System for Independent Namibia

bibliographic database
Line

Periodical article

Title:	Reflections on a Foreign Exchange Management and Allocation System for Independent Namibia
Author:	Mwase, Ngila R.L.
Year:	1987
Periodical:	Africa Development: A Quarterly Journal of CODESRIA (ISSN 0850-3907)
Volume:	12
Issue:	3
Pages:	71-87
Language:	English
Geographic term:	Namibia
Subjects:	monetary policy terms of trade Economics and Trade international relations
External link:	https://www.jstor.org/stable/24486630
Abstract:	Within the context of the mineral economy of Namibia and the development strategies articulated by the SWAPO liberation movement, this article examines several options for exchange rate management and recommends a particular administrative system for the allocation of foreign exchange in independent Namibia. The options available to independent Namibia include: 1) continued membership of the Pretoria-dominated Rand Monetary Area; this is not a viable option for economic, political and strategic reasons, 2) 'floating' a Namibian currency, and 3) using an administrative, essentially Central Bank propelled allocation mechanism; this entails setting an official exchange rate whereby the local currency is fixed against the SDR (Special Drawing Right) and other hard currencies. Given recent experiences with the floating option, especially the auctioning system variant, the third option seems to be the least inappropriate for independent Namibia, followed by a non-auctioning floating system. Notes, ref., sum. in French.