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Suppose Bank of Namibia Balance sheet is given below. Briefly explain and tabulate how a sterilised foreign exchange purchase of N$ 20 000 000 worth

Suppose Bank of Namibia Balance sheet is given below. Briefly explain and tabulate how a sterilised foreign exchange purchase of N$ 20 000 000 worth of foreign bonds by Bank of Namibia affects its Balance Sheet.

Assets

Liabilities

Foreign Assets N$ 100 000 000

Commercia banks deposit N$50 000 000

Domestic Assets N$ 200 000 000

Currency in circulation N$250 000 00

Briefly explain and tabulate how a sterilised foreign exchange purchase of N$ 20 000 000 worth of foreign bonds by Bank of Namibia affects its Balance Sheet.

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