Under the present arrangement, the country cannot use the exchange rate as a policy tool to control the increase or decrease in the supply of money. This has often been a source of resentment against this exchange rate arrangement as economic management is taken out of the hands of the domestic monetary authorities.
Related to this is the whole issue of the ability of the Namibian economy to absorb external shocks. Namibia is a highly open economy and - given its membership of the CMA - it can hardly use exchange rates or interest rates to mitigate the impact of external shocks. Namibia has had a number of unfavourable shocks in the past 20 years.