Rand Merchant Bank (RMB)’s decision to discontinue cash deposits in six foreign currencies has sparked criticism from industry players, reigniting debate about access to forex services, notice periods, and the growing shift away from physical cash in Namibia’s banking sector.

Effective 15 January 2026, Rand Merchant Bank branches will no longer accept cash deposits in Japanese Yen (JPY), Hong Kong Dollar (HKD), New Zealand Dollar (NZD), Singapore Dollar (SGD), Canadian Dollar (CAD) and Australian Dollar (AUD). The bank stated that the move forms part of efforts to “streamline and enhance operational processes” amid declining global demand for cash-based foreign exchange.

However, for businesses that rely on multi-currency cash services, the decision has landed hard.

One affected business described the one-month notice period for the cash discontinuation as “deeply disappointing and insufficient”, warning that the withdrawal will have tangible commercial consequences.

“One month is not enough for businesses to adjust operations, inform international clients, or secure viable alternatives. This decision reduces service options for travellers and businesses, creates international confusion, and directly undermines confidence in the banking sector,” a local businessman commented.

Another business noted that the change will also erode margins and turnover, compounding the effects of earlier exchange-rate changes introduced two years ago. Of greater concern for some businesses is the risk of a domino effect, where other banks follow suit, further constricting global commerce links.

RMB, however, insists the impact will be minimal. The bank points to a global move away from cash, citing security risks, rising handling costs and sharply declining volumes, particularly for what it terms “less commonly traded” currencies.

“Over the past few years, we have seen a decrease in volumes, both for these currencies and cash in general,” an RMB official stated, adding, “The discontinuation therefore has a very limited impact due to lack of demand.”

The bank added that it is not required to communicate such changes internationally, also that no mechanism exists to communicate these changes to global clients and that it directly informed those who had previously used the service. “Our discontinuation date remains as communicated,” RMB stated.

Meanwhile, the Bank of Namibia (BoN) has clarified that it did not issue any directive prompting foreign exchange changes.

Responding to an enquiry from New Era, BoN confirmed that foreign exchange controls remain unchanged and that the decision lies squarely with commercial banks.

“Some commercial banks still, and will continue to, buy and sell these currencies from tourists and visitors,” BoN spokesperson, Sonia Namadiko, said, noting that the affected currencies are considered ‘odd currencies’ which are infrequently requested and less actively traded than the US dollar, Euro or Pound Sterling.

BoN continued that there is a more troubling driver behind the scenes, namely, rising fraud risks and escalating costs. “For some banks, repatriation and remittance of these currencies have become excessively expensive, with certain currencies no longer being accepted by clearing or correspondent banks due to the circulation of fraudulent notes,” Namadiko added.

From a purely commercial standpoint, BoN acknowledged, banks have been reassessing whether the volumes justify the increased risk and expense. The central bank downplayed any risk to Namibia’s foreign reserves, stressing that the change applies only to physical cash notes. Electronic transfers via SWIFT remain unaffected, and Namibians travelling abroad are encouraged to rely on international card payments, which are safer and more cost-effective.

Still, the episode highlights a growing tension in Namibia’s financial system, which is the clash between banks optimising costs in a digital-first world and businesses that still depend on cash-based forex services. 

As cash continues its global retreat, the question now is not whether more currencies, or more banks, will follow RMB’s lead, but how quickly the market, and its customers, can adapt.-ebrand@nepc.com.na