The legal relationship between the dollar and rand

Abstract

None provided. The following is taken from the author's introduction:

In the period before Namibia's Independence (21 March 1990), Namibia was considered a monetary province of South Africa with the Rand as the only legal tender in Namibia. All decisions concerning monetary, exchange control policies, exchange rate, liquidity and other controls of commercial bank were taken in South Africa. Namibia had to accept the South African policies whether or not they were appropriate to its situation

Recognizing the fact that Namibia is no longer a monetary province of South Africa, and no longer receives direct budget support or subsidies, the Namibian Government decided to build up its own monetary system which involved inter alia] setting up the Bank of Namibia. :. [and] introducing the Namibian Dollar at par to the rand in September 1993

However, although the institutional framework was established, another problem that arose concerning the issue of the Namibian Dollar was: Why was it so important for Namibia to have its own currency?