Bank of Namibia signs gold purchase agreement with Navachab

By: Hertha Ekandjo

The Bank of Namibia (BoN)_ this week signed a gold purchase agreement with QKR Namibia Navachab, as part of efforts to strengthen the central bank’s reserve management framework.

The agreement provides for the structured purchase of domestically produced gold, in line with international reserve management standards and the bank’s long-term strategic objectives.

According to a media statement issued on Tuesday, the development forms part of the bank’s broader gold acquisition programme, aimed at strengthening the composition of reserve assets, enhancing financial resilience, and improving the country’s ability to respond to external shocks.

BoN noted that, as a gold-producing nation, the initiative also supports the retention of national resources and aligns with its mandate to safeguard macroeconomic stability and promote national economic interests.

“Moreover, gold possesses other desirable characteristics that make it suitable for inclusion in a foreign reserve portfolio. These include providing macroeconomic stability during economic shocks, hedging against inflation, and serving as a store of value,” the statement read.