INTERNATIONAL RESERVE, FOREIGN EXCHANGE OPERATIONS AND
REVALUATION RESERVE ACCOUNT (ss 27-31)
[NAMa15y1997s27]27
International reserve
(1) The Bank shall establish and maintain, on such terms and conditions as the Board
may from time to time determine, an international reserve, which shall consist of all or any of
the following:
(a)
Gold;
(b)
foreign exchange in the form of notes and coins or bank balances held abroad,
denominated in such currencies and located in such countries as the Board may approve for
the purposes of this section;
(c)
any internationally recognized reserve asset, including(i)
the reserve position of Namibia in the International Monetary Fund;
and
(ii)
holdings of special drawing rights by Namibia;
(d)
bills of exchange and promissory notes, as well as treasury bills and other
securities issued or guaranteed by foreign governments or international financial institutions,
denominated in foreign currencies and payable outside Namibia; and
(e)
such other external assets as the Board may approve for the purposes of this
section.
(2) The Bank shall have due regard to the liquidity and safety of such assets and to the
need to protect the international purchasing power of the reserve.
[NAMa15y1997s28]28
Adequacy of international reserve
(1) The Bank shall use its best endeavours to maintain the international reserve
established under section 27 at a level that is, in the opinion of the Board, adequate for the
international transactions of Namibia.
(2) If such international reserve is at such a level that the Board considers its
adequacy in jeopardy, the Board shall submit to the Minister a report on the reserve position
together with recommendations concerning the measures that the Board considers necessary
to forestall or otherwise remedy the situation.
(3) Until such time as, in the opinion of the Board, the situation has been rectified, the
Board shall continue to make such reports and recommendations to the Minister at intervals
not exceeding one month.
[NAMa15y1997s29]29
Power to deal in gold, foreign exchange and to open accounts
The Bank may(a)
buy, sell, or deal in gold or other precious metals;
(b)
buy, sell, or deal in foreign currencies, using for these purposes any of the
instruments commonly used in such transactions;
(c)
buy, sell, or deal in treasury bills and other securities issued or guaranteed by
foreign governments or international financial organizations;
(d)
open and maintain accounts with any central bank or monetary authority, or
any banking or other financial institution or any international financial organization; and
(e)
open and maintain accounts, and act as agent or correspondent, for any foreign
central bank or monetary authority, or any banking or other financial institution outside
Namibia, or any foreign government or agent of such government, or any international
financial organization.
[NAMa15y1997s30]30
Limitation
The Bank shall, subject to the provisions of this Act, when exercising the powers
conferred by section 29, deal only with(a)
the Government;
(b)
banking or other financial institutions in Namibia;

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