Namibia News

BoN defends !Gawaxab’s poor rating

THE Bank of Namibia (BoN) has come to the defence of its governor, Johannes !Gawaxab, who has been rated as having performed poorly according to the ‘Central Banker Report Cards’.

The report cards have been published annually by the Global Finance magazine since 1994.

Central bank governors of 101 key countries and territories are graded by the magazine.

The bank’s deputy communications director, Kazembire Zemburuka, says the ratings are inconsistent, and reports stemming from the ratings are subjective.

“These reports and the conclusions thereof appear fundamentally flawed,” he says.

In a statement Zemburuka says an attempt to correlate the actions of the central bank and the performance of the governor with the overall macroeconomic condition of the country is inaccurate and highly misleading.

This because the bank is restricted to the role of ensuring monetary and financial stability.

“Also, it is common cause that Namibia’s macroeconomic stability has been tested during the preceding two years due to the Covid-19 pandemic.

“During such difficult economic times confidence tends to be affected negatively,” he says.

He says despite this Namibia has emerged relatively resilient.

Zemburuka attributed this to the prompt measures taken by key stakeholders, including the central bank.

The ‘Central Banker Report Cards 2021’ is themed ‘The Art of Timing’, and includes the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States, and the Central Bank of West African States.

The grading considers various objective factors, including the implementation of an appropriate monetary policy.

!Gawaxab scored a D+.

The best score is an A, while the worst is an F.

Zemburuka says the rating does not invalidate the significant contributions of the monetary authority during the past 19 months.

Some central bank heads in the Southern African Development Community have performed better than Namibia’s governor.

Angola’s José de Lima Massano was rated a B-, and Botswana’s Moses Pelaelo scored a B+.

Meanwhile, Henri Rabarijohn from Madagascar, was rated the same as !Gawaxab with a D+, while Harvesh Kumar Seegolam from Mauritius scored a B.

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