Namibia seeks approval to hold foreign currency in Yuan

The Governor of the Bank of Namibia said they would know by April this year whether the country can hold some of its foreign currency reserves in Yuan.

With about 1.4 billion U.S. dollars (16 billion Namibian dollars) in foreign currency reserves, Namibia wants to hold about 10 percent of the funds in Yuan.

The 1.4 billion U.S. dollars is worth more than two months imports, and Namibia wants the Yuan to drive trade between the two countries.

In December last year, the central bank said holding part of the foreign currency in Yuan would allow Namibia to trade in and with China.

The central bank governor, Ipumbu Shiimi, told the media last Thursday in Windhoek that plans to have a part of the foreign currency reserves in Yuan were being delayed by "a lot of procedures" in China.

"We are still making preparations, but it's taking long. It's not easy to go to China. We have to go through a lot of procedures to invest in China. It might even take a year or three years," he said.

"We believe we are going to fast-track the process. We are almost there," Shiimi said. "By around April, we would know the status."

Shiimi further said Namibia will have to consider whatever investing instruments have to be used so that getting the money out of China can be done at any time. Endi