- September 8, 2018
- Posted by: admin
- Category: Current News
The purpose of this study is to review the Namibia framework for the collection and compilation of remittances. Remittances have grown remarkably during the last two decades, constituting a large source of foreign exchange flows to developing countries. This in turn has excited considerable interest among economists and policymakers seeking to have a clear understanding of the role and importance of remittances.
However, to understand fully the impact of these flows, it is important to measure them accurately. Namibia’s Balance of Payments (BOP) has not fully captured the volumes of these flows, evidenced in its current estimation method. This study reviews various methodologies that the Bank of Namibia (BON) could possibly adopt by examining the experiences from other central banks. The study assesses experiences of selected MEFMI member institutions, namely the Central Bank of Lesotho (CBL), Central Bank of Kenya (CBK) and the Bank of Uganda (BOU), to draw lessons and evaluate possible methods that Namibia could implement. In addition, having examined the current methodology for Namibia, the findings of the study revealed that although remittances do not outweigh other financial flows in the BOP, they are significantly understated. The study used a two-pronged approach, based on data reported by authorised dealers for preliminary estimates with some adjustments for informal and in-kind transfers and final estimates derived from household surveys conducted in collaboration with the statistics agency.