Stop parroting – central bank tells reporters

The Bank of Namibia has urged financial reporters to scrutinise institutions, warning that inaccurate reporting can contribute to financial uncertainty.

Bank of Namibia (BoN) governor Ebson Uanguta in his opening remarks delivered on his behalf by the bank’s technical adviser, Romeo Nel, at the launch of the Bloomberg Media Initiative Africa financial journalism training programme in Windhoek on Tuesday, said financial systems depend on reliable information.

He said inaccurate, incomplete or misunderstood information could lead to poor decisions and compound errors quickly.

“A financial system runs on money, but it stands on information. A bank lends because it believes a borrower will repay. A depositor leaves their savings in a bank because they believe they will be there tomorrow.

“A pension fund invests because it believes it understands the risks it is taking. Each of these is a judgement, and each judgement rests on information. When that information is sound, decisions tend to be sound,” he said.

Uanguta pointed to the collapse of confidence in Silicon Valley Bank in the United States in March 2023, when information spread online and depositors withdrew billions of dollars in a single day.

He said it demonstrated how quickly information could trigger action, adding that responsible financial reporting is important in shaping public understanding and confidence.

“Financial journalism is therefore part of the infrastructure of price and financial stability, not by carrying the central bank’s narrative. Journalists should turn data into understanding, promote financial literacy and subject institutions to scrutiny,” Uanguta said.

He warned reporters against repeating information provided by institutions, saying it adds nothing to stability but volume.

The governor said independent, accurate and evidence-based reporting is needed, especially when reporting on monetary policy decisions as it explains what it could mean for inflation, savings, borrowing and investment.

The training programme comes at an important time for Namibia as oil discoveries in the Orange Basin raise expectations of future economic growth and opportunities, Uanguta said.

He said reporters would have an important role in helping the public distinguish between what had been discovered and what had been decided, what might be earned and what had already been earned, as well as opportunity and certainty.

“Successfully navigating this transformation will require sound, data-driven economic policy, greater transparency, and clear, accurate communication through the media,” Uanguta said.

He urged journalists participating in the programme to question economic data rather than simply reporting figures.

The governor told reporters to ask what is driving a change in the data, whether it is temporary or persistent, who is affected, and what the data does not reveal.

“Numbers tell us what happened; good journalism tells us what it means. I would like to ask the delegates to carry a few questions into every data release,” he said.

Uanguta warned against rushing to publish financial information without verification, saying being first but wrong could have costly consequences for ordinary people.

“Be independent. Ask difficult questions, including of the Bank of Namibia. Verify before you publish,” he said.

He urged reporters to distinguish facts from forecasts and forecasts from speculation, and said they should be prepared to acknowledge when information was not yet known.

The governor said the bank is committed to engaging reporters and providing timely and credible information to support accurate reporting.

The Bloomberg Media Initiative Africa Financial Journalism Training Programme is being held in partnership with Bloomberg, the Namibia University of Science and Technology, the International University of Management and other institutions.

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