Foreign currency reserves controlled to benefit domestic economy – BoN
Clarifying the practice of forex trading in Namibia, the central bank has reminded prospective traders that the exchange or conversion of the Namibian Dollar into any foreign currency is heavily regulated to control the use of the country’s foreign currency reserves in the best interest of the economy.
This comes after a local lawyer, Kadhila Amoomo, on social media urged the central bank and other big firms to rather assist young Namibians who have started participating in various income-generating activities such as bitcoin and forex trading.
“This is a good thing that should be embraced. We urge the Bank of Namibia to assist these youngsters. Offer them training and exposure, teach them how to avoid regulatory violations, and offer online workshops. It should not always be a prohibitive approach. More than ever, our country needs this kind of tenacious entrepreneurs,” Amoomo said.
Responding to questions from Inside Business, the central bank outlined that foreign exchange in Namibia is regulated by the Currency and Exchange Act, the Exchange Control Regulations of 1961 and the Rules and Order issued under these laws.
“Under these laws, only licensed Authorised Dealers (AD) such as commercial banks and Authorised Dealers with Limited Authority (ADLAs), commonly known as Bureaus of Exchange, can deal in foreign exchange for legitimate reasons, must do so via commercial banks or Foreign Exchange Bureaus.”
However, the bank said any person or entity transacting in foreign exchange without complying with the above applicable laws and the process described above, does so unlawfully.
Despite the above, the Bank said it recognises that there may be a legitimate need for individuals to transfer or invest money abroad, hence the law permits the purchasing of foreign exchange under specified conditions.
Meanwhile, self-proclaimed foreign exchange (forex) trade Michael Amushelelo accused the Bank of Namibia of being “an instrument used to keep the Namibian nation poor.” He made this remark on social media after commenting on the status of online trading in the country. Amushelelo was arrested last year for fraud and money laundering through which he has been charged with running a pyramid scheme while pretending to trade in foreign currencies.
According to Amushelelo, the problem is the capitalist system Namibia adopted which he described as basically a ‘dog-eat-dog’ system. “We all know that most young people remain highly educated yet unemployed. The world is changing and the internet is providing a lot of opportunities for young people to improve their livelihoods. I encourage all young people to learn about cryptocurrency and forex online trading,” encouraged Amushelelo.
He continued that the central bank merely protecting the interest of commercial banks: “Everyone knows that the banking system is modern-day slavery. We all know the biggest losers will be the commercial banks when many individuals start online trading. Individuals invest their money in the banks and the banks only offer our people peanuts as interest. While when our people take out loans, they charge huge amounts of interest.”
Amushelelo concluded that BoN does not wish to see Namibian people financially liberated, saying that once they are financially free they will have no use for commercial banks.
e self-proclaimed forex trader said banks make the largest portion of profits from their loan books and that for as long as people are not financially liberated the banks will continue to rape them. “We shall one day overcome this abusive system,” he added.
Caption: Michael Amushelelo
Photo: File photo
2020-07-23 18:09:04 | 2 months ago