currency - the rand - “ without restriction subject to a normal handling charge ” at a fixed exchange rate ; and ( b ) an explicit requirement that at least a major proportion of its monetary liabilities be backed by the reserve currency or other foreign assets. more specifically, article 4, section 1, of the bilateral monetary agreement states that, and i quote : “ against the aggregate amount of namibia dollar currency issued by the bank of namibia, the bank of namibia shall maintain a reserve equivalent thereto in the form of rand assets and freely usable foreign currencies in such proportion as the bank of namibia considers appropriate … ”. in addition, the bilateral agreement also provides that either contracting party has the right to issue its own national currency. it is also a part of the agreement that either party may introduce measures for domestic resource mobilisation in the interest of the development of their respective countries. i will in particular draw your attention to two issues in the provisions cited above. first, there is under no circumstances room for changing the exchange rate, and second, the backing rules of the currency must be observed at all times. these two characteristics remain both the source of strength as well as the most limiting aspects of the present monetary arrangement. the fixed exchange rate and the backing rule confer a degree of credibility that is usually not found in the conventional pegged exchange rate arrangements. however, we must also clearly state that this credibility is obtained at a cost. in monetary policy decisions, as in most other aspects of life, there is “ no free lunch ”! the decision to join the cma was influenced by the long economic relationship with south africa, and was perceived as the most appropriate arrangement under the prevailing circumstances. the extent to which the country has benefited from this arrangement will depend on a careful assessment of its merits and constraints. benefits of the cma arrangement let me start by first analysing the benefits. price stability by far one of the greatest benefits of a fixed exchange rate arrangement is that it provides price stability in the domestic economy. it is now widely accepted that the main objective of the monetary authorities in most countries is to achieve price stability. by pegging the domestic currency to the currency of a low - inflation country, its ability to maintain price stability is enhanced, provided there is a strong commitment on the part of the authorities to maintain the exchange rate. the arrangement constrains monetary expansion, restrains excessive government spending, and sends out credible signals to private agents about prospects for inflation. this

of ceremonies, we need to proceed with a greater urgency and momentum to make land rights in the communal areas fully tradable. going forward, we are proposing that a multi - disciplinary team be set - up to map out the road ahead. this team should be tasked to coordinate all actions required. for instance, some of the current land laws need to be amended to be reflective of this ideal. the revised laws also need to strengthen the management of the land that is used by all in the communal areas, the so - called commonages. this is one of the issues that need urgent attention. further, there is need to educate the people in the communal areas of their rights and obligations that results from a secure and tradable land tenure. education will ensure that the citizens fully benefit from the economic value of the land that has tradable land rights without falling prey to uninformed behaviour, which can lead to them loosing their most valuable possession. as namibians, we should strive to make land in the communal areas tradable within a period of 10 years. bis central bankers ’ speeches in conclusion, ladies and gentlemen, property ownership in namibia, including land ownership is a fundamental human right, which is enshrined in our supreme law, article 16 of the namibian constitution. in addition, the national land policy of 1998 states that “ all citizens have equal rights, opportunities and security across a range of tenures and management systems and several forms of land rights will be accorded equal status before the law ”. we have not yet realised these aspirations, director of ceremonies. our people in the communal areas have no land rights that are equal in status to those of their fellow citizens in the rest of the country. as a result, they lack the opportunities to turn their land into productive capital. let us, therefore, do what is required. let us fulfil this human right, which will, in turn, enhance access to finance by the rural poor and unlock the concealed potential and destiny of our great country. ladies and gentlemen, the destiny of a people, a nation is not necessarily shaped by one big event. it is shaped a by a series of events, a series of decisions – both major and minor. let us therefore do what is required to move from a communal land system to a tradable and secure land tenure system. let us to move towards the chosen destiny of this great nation! i thank you for your kind attention. bis central bankers