The central bank aims to introduce an entirely new Namibian currency series from June 2025, to replace the current banknote series which has been in circulation since 2012 and the coins that have never been upgraded since their first issuance in 1993. The new series is expected to incorporate the latest security features while ensuring Namibian banknotes and coins remain modern, resilient and secure.
This major currency development was announced yesterday by central bank governor, Johannes !Gawaxab, during the launch of the N$60 commemorative President Hage Geingob banknote in the capital.
“This proactive approach reflects the bank’s commitment to innovation, resilience, and security in its financial system and ensures that our currency remains a robust and reliable symbol of our nation’s identity and economic strength,” said !Gawaxab. The governor added that any stable economy relies on two fundamental principles of sound money, namely the singleness of money and the finality of settlement, which he emphasised are both essential to maintaining public trust.
“Singleness of money ensures that all forms of money, whether held in bank accounts or as physical cash, retain the same value and are exchangeable at par. A Namibia dollar in your bank account is worth the same as a Namibia dollar in your wallet. The finality of settlement guarantees that once payment is made, it is irrevocable and complete, providing certainty in financial transactions. While these transactions may seem obvious, they exist only because of confidence in the monetary system. At the Bank of Namibia, we safeguard this trust by maintaining the value of money through low and stable inflation and by regulating banks to ensure financial stability. It’s a constitutional responsibility we take seriously and which we won’t fail,” said !Gawaxab.
Two years ago, the central bank undertook a comprehensive study of Namibian banknotes and coins in circulation. !Gawaxab noted that industry best practice dictates that a currency review should take place at least every six to eight years, which is essential to ensuring currency security, durability, and cost-effectiveness. Upgrading security features helps to prevent counterfeiting, while technological updates maintain competitiveness.
!Gawaxab noted the study revealed the Namibian currency is highly ranked within the region and globally.
Said the governor: “However, the need for the bank to undertake a minor upgrade on the current banknote series and a complete overhaul of the coin series has been identified. In terms of banknotes, it became imperative to enhance their security features to remain abreast of technological advancements while protecting the currency against counterfeiting. For the coins, the objective is to modernise the current coin series, allowing for the incorporation of state-of-the-art security features. The review of coins is also crucial to manage and mitigate negative seigniorage, a situation where production costs exceed the coin’s face value. This issue has become more common due to the increased price of metals in coin production. Addressing this promptly will help to optimise resources, address negative seigniorage, and sustain the currency system efficiently.”
Fundamentally, the central bank is the sole issuer of physical currency and plays a key role in regulating both the quantity and value of money within the domestic economy. The Bank of Namibia achieves this through direct mechanisms such as setting policy interest rates and regulating bank credit creation, as well as indirect channels that shape broader financial conditions and systemic risk appetite.
Beyond traditional monetary policy tools, the central bank leverages forward guidance and macroprudential policies to influence liquidity, credit availability, and economic stability in an evolving financial landscape.
“A nation’s currency is more than a means of payment and store of value or unit of account; it is a declaration of sovereignty, a marker of identity, and a reflection of history,” !Gawaxab explained.
He added that Namibia’s path towards its own national currency is deeply interwoven with its broader quest for independence and self-determination.
Before independence in 1990, Namibia used the South African rand as its official currency. The transition to the Namibia dollar in 1993 marked a significant milestone in Namibia’s history as this change symbolised newfound independence and strides towards establishing a unique national identity and sovereignty through its own currency system.
During the 2010s, the Namibia dollar underwent significant advancements in currency’s security and durability. By 2012, a new family of banknotes was introduced, featuring advanced security features like optical variation ink and colour-shifting threads, which marked a significant shift in the main motifs on the banknotes.
Photo: Heather Erdmann