Bank of Namibia clarifies forex trading in Namibia

Bank of Namibia (BoN) said, the exchange or conversion of the Namibia Dollar into any foreign currency is regulated to control the use of Namibia's foreign currency reserves in the best interest of the economy.

A media statement issued on Saturday by the bank's Deputy Director, Corporate Communications Kazembire Zemburuka said, the Bank has received numerous inquiries about foreign exchange or Forex trading and requirements of persons carrying out related activities to register with the Bank.

He said, foreign exchange in Namibia is regulated by the Currency and Exchanges Act number nine of 1933, the Exchange Control Regulations of 1961 and the Rules and order are issued under those laws.

Under these laws, only licensed Authorised Dealers such as commercial banks and authorised dealers with limited authority commonly known as Bureaus of Exchange can deal in foreign exchange. As such, all persons and entities that wish to acquire foreign exchange for legitimate reasons must do so via commercial banks or Foreign Exchange Bureaus, said Zemburuka.

He added that it should be noted that Namibian residents under 18 years and older are entitled to an investment allowance of N.dollar 6 million per year for investment purposes abroad and the utilisation of such allowance can only be done through an authorised dealer.

'The choice of investment is up to the discretion of the individual, and for this allowance to be processed a certificate of good standing from the Receiver of Revenue is required. And it should be borne in mind that the above mentioned transactions can only be done with the individual's own money. , said Zemburuka.

He further added that any person or entity transacting in foreign exchange without complying with the applicable laws and the process described, does so unlawfully, thus the Bank of Namibia has published a list of all licensed authorized dealers on its website, therefore, individuals making use of licensed entities to acquire foreign exchange do not need to register with the Bank of Namibia.

Source: Namibia Press Agency