Generally, we would expect a depreciating rand to translate into increased exports for the Namibian economy as domestic goods become more competitive in the international markets. These benefits have been limited as Namibian exports consist mainly of commodities whose prices are determined in the international commodity markets. The answer to the question about the stability of the rand is not obvious.
First, events since the crisis that shook the rand in 1998 have proved the resilience of that currency as witnessed by the rapid rate of recovery of the South African economy and the present stability of the rand. International experiences tell us that most currencies undergo periods of strength and weaknesses. It is their ability to survive such tremors that determine their relevance.