Namibian Dollar (NAD) Up Despite USD Rebound, As Auto Sales Grow in Namibia
USD/NAD slips, indicating strengthening Namibian Dollar, as Namibia’s economy shows resilience, with new vehicle sales supporting it.
Quick overview
- The Namibian Dollar (NAD) is strengthening against the US Dollar (USD) as Namibia's economy shows resilience, particularly supported by a surge in new vehicle sales.
- Despite a broader rebound of the USD against major currencies, the USD/NAD pair has remained stable, indicating confidence in the NAD.
- Robust consumer demand is evident with an 18.2% month-over-month increase in new car registrations in March, signaling potential economic recovery.
- As long as commodity exports and local consumption remain strong, the NAD is expected to continue outperforming other currencies despite external pressures.
USD/NAD slips, indicating strengthening Namibian Dollar, as Namibia’s economy shows resilience, with new vehicle sales supporting the currency.
NAD Holds Firm as USD Retreats Against Southern African Currency
The Namibian Dollar (NAD) continued to show resilience on Tuesday, strengthening against the US Dollar despite the greenback’s broad-based rebound in global markets. The USD/NAD pair, which closed the previous week at 18.74, opened the session with a bearish gap at 18.64 and has since hovered near that level. This comes as the USD gains against other major currencies such as the euro and Swiss franc.
USD/NAD Chart Daily – Q1 Volatility and Trade Tariff Whiplash
The first quarter of 2025 saw the USD/NAD pair trending downward, falling from 19.20 to just above 18. However, a sharp reversal occurred in early April amid global financial volatility sparked by reshuffled U.S. trade tariffs. This triggered a selloff in commodity-tied currencies, temporarily weakening the NAD and sending USD/NAD surging to 19.94.
Yet, buyers failed to breach the psychological resistance at 20.00, and as U.S. President Donald Trump suspended most tariffs, confidence returned to the Namibian Dollar. The NAD’s rebound was further supported by its exposure to commodities and tourism, two sectors benefiting from improving macro conditions.
Local Demand Shows Signs of Recovery: Auto Sales Surge in Namibia
One key indicator supporting the NAD is robust consumer demand, highlighted by a notable increase in new car sales. According to IJG Research, Namibia recorded 1,320 new car registrations in March, an 18.2% month-over-month increase from February’s 1,117 units.
🚗 Passenger vehicles:
- March sales rose 21.3% MoM to 620 units
- Down only 0.8% YoY
- Q1 passenger car sales up 5.5%, totaling 1,600 units
🚚 Commercial vehicles:
- 700 units sold in March, a 15.5% MoM gain
- Still 15.3% lower YoY from March 2024’s 826 units
Despite mixed annual comparisons, the monthly data signals a possible economic turnaround, especially if domestic demand continues to grow in tandem with easing external pressures.
Outlook: NAD Gains May Hold as Fundamentals Improve
Although broader market sentiment remains fragile, Namibia’s steady economic indicators and easing U.S. trade tensions are providing tailwinds for the NAD. As long as commodity exports remain stable and local consumption holds up, the Namibian Dollar could continue to outperform peer currencies, even in the face of USD strength.
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