Cross-border currency woes
Bank Windhoek's sister bank in Botswana is studying the feasibility of trading Namibia dollars in that country.
NDAMA NAKASHOLE
The Bank of Namibia (BoN) says there is no demand for Namibia dollars in Botswana or South Africa, which is why the currency is not available in those countries.
The central bank was responding to a query after a recent trip to Botswana revealed that Namibia dollars were not exchangeable for the Botswana pula at Bureaux de Change or commercial banks in that country.
As it is now, the Namibia dollar is not regarded as a tradeable currency anywhere outside of Namibia's borders. It is also not accepted as legal tender in South Africa.
The BoN said it might be difficult to justify the cost of exchanging Namibia dollars in that country, as Botswana would have to repatriate these notes to Namibia.
Get ready
Given the small number of Namibian citizens who require such service when travelling, the volumes would not be significant, BoN spokesperson Kazembire Zemburuka told Market Watch.
“The Namibia dollar is legal tender in Namibia and not a tradable currency or legal tender in Botswana and South Africa. Travellers are advised to obtain the rand or buy Botswana pula [in Namibia] before undertaking their journeys to these countries. Alternatively, they may use their debit or credit cards within the permissible thresholds,” he said.
The South African rand is legal tender in Common Monetary Area (CMA), of which Namibia is a member. The rand is also a tradable currency in Botswana although it is not part of the CMA, he said.
The rand can therefore be exchanged and used in Namibia and Botswana.
“If a Namibian is travelling to Botswana or South Africa, he or she can exchange Namibia dollars for rand or exchange it for Botswana pula in Namibia before he or she leaves the country.”
Customer needs
However, Botswana is home to a Namibian-owned bank, Bank Gaborone. The Capricorn Group, which also owns Bank Windhoek, said it was assessing the feasibility of trading Namibia dollars at Bank Gaborone branches.
“Bank Gaborone is in the process of assessing the feasibility of trading NAD based on customer needs,” Marlize Horn, executive officer: brand and corporate affairs of the Capricorn Group, told Market Watch on inquiry.
The Bank of Namibia (BoN) says there is no demand for Namibia dollars in Botswana or South Africa, which is why the currency is not available in those countries.
The central bank was responding to a query after a recent trip to Botswana revealed that Namibia dollars were not exchangeable for the Botswana pula at Bureaux de Change or commercial banks in that country.
As it is now, the Namibia dollar is not regarded as a tradeable currency anywhere outside of Namibia's borders. It is also not accepted as legal tender in South Africa.
The BoN said it might be difficult to justify the cost of exchanging Namibia dollars in that country, as Botswana would have to repatriate these notes to Namibia.
Get ready
Given the small number of Namibian citizens who require such service when travelling, the volumes would not be significant, BoN spokesperson Kazembire Zemburuka told Market Watch.
“The Namibia dollar is legal tender in Namibia and not a tradable currency or legal tender in Botswana and South Africa. Travellers are advised to obtain the rand or buy Botswana pula [in Namibia] before undertaking their journeys to these countries. Alternatively, they may use their debit or credit cards within the permissible thresholds,” he said.
The South African rand is legal tender in Common Monetary Area (CMA), of which Namibia is a member. The rand is also a tradable currency in Botswana although it is not part of the CMA, he said.
The rand can therefore be exchanged and used in Namibia and Botswana.
“If a Namibian is travelling to Botswana or South Africa, he or she can exchange Namibia dollars for rand or exchange it for Botswana pula in Namibia before he or she leaves the country.”
Customer needs
However, Botswana is home to a Namibian-owned bank, Bank Gaborone. The Capricorn Group, which also owns Bank Windhoek, said it was assessing the feasibility of trading Namibia dollars at Bank Gaborone branches.
“Bank Gaborone is in the process of assessing the feasibility of trading NAD based on customer needs,” Marlize Horn, executive officer: brand and corporate affairs of the Capricorn Group, told Market Watch on inquiry.
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