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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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