GOVERNMENT GAZETTE OF THE REPUBLIC OF NAMIBIA N$2.00 No.3449 WINDHOEK - 20 June 2005 CONTENTS Page GENERAL NOTICE No. 101 Directive under the Bank of Namibia Act, 1997 (Act No. 15 of 1997) (As amended) ........ _________________ 1 General Notice BANK OF NAMIBIA No. 101 2005 DIRECTIVE UNDER THE BANK OF NAMIBIA ACT, 1997 (ACT NO. 15 OF 1997) (AS AMENDED) In my capacity as Chairperson of the Board of the Bank of Namibia, and under the powers vested in the Board by virtue of section 59(2) of the Bank of Namibia Act, 1997 (Act No. 15 of 1997), as amended by the Bank of Namibia Amendment Act, 2004 (Act No. 11 of 2004), I hereby issue the Directive on the Minimum Reserve Requirement (BON-D 1/2005) as contemplated in section 35 of the Act. T.K. ALWEENDO GOVERNOR Windhoek, 30 May 2005 THE MINIMUM RESERVE REQUIREMENT Overview Section 35 of the Bank of Namibia Act, 1997 (Act No. 15 of 1997) as amended, (hereinafter “the Act”) allows the Bank to use minimum reserve balances as a monetary policy instrument. Further amendments are made in view of the fact that the Namibia Interbank Settlement System (NISS) has been enhanced to record and maintain the required, actual or current balances on the Reserve Account of each banking institution. The Bank regards the minimum reserve requirement as a monetary policy instrument that may be adjusted from time to time based on conscious monetary policy decisions.