The Namibian Dollar (NAD) serves as the official currency of Namibia, a nation situated in southwestern Africa. Established in 1993, the Namibian Dollar took the place of the South African Rand (ZAR) as the country's official currency following its independence from South Africa in 1990. The Bank of Namibia, which is the central bank of the country, is tasked with the issuance and management of the Namibian Dollar.

Subdivisions and Denominations
The Namibian Dollar is divided into 100 smaller units known as cents. Coins are available in denominations of 5, 10, and 50 cents, as well as 1, 5, and 10 Namibian Dollars. Banknotes can be found in denominations of 10, 20, 50, 100, and 200 Namibian Dollars.

Exchange Rate and Currency Peg
The Namibian Dollar is pegged to the South African Rand at a one-to-one ratio, meaning that one Namibian Dollar is equivalent to one South African Rand. Because of this peg, the South African Rand is also recognized as legal tender in Namibia and can be used interchangeably with the Namibian Dollar.

Economy
Namibia has a mixed economy that depends on the mining, agriculture, manufacturing, and tourism sectors. The country is abundant in natural resources, including diamonds, uranium, and various minerals, which play a significant role in its export revenues. Although agriculture employs a large segment of the population, it is constrained by the arid climate and contributes a smaller portion to the GDP. Namibia's economy has seen growth periods fueled by the mining sector, infrastructure advancements, and foreign investments. Nonetheless, the country continues to grapple with challenges such as high unemployment, income inequality, and the need for further economic diversification.

Challenges and Prospects
Namibia encounters several economic hurdles, including a heavy dependence on the mining sector, susceptibility to external shocks like commodity price fluctuations, and elevated levels of unemployment and income inequality. The nation is striving to tackle these issues through economic diversification, infrastructure investment, and improvements in governance and fiscal management. The long-term economic outlook for Namibia is closely linked to its capacity to manage its natural resources, diversify its economy, and attract foreign investment. Additionally, addressing high unemployment rates, income inequality, and environmental degradation is essential for ensuring sustainable development.

Summary
In conclusion, the Namibian Dollar is the official currency of Namibia, managed by the Bank of Namibia. The currency is divided into cents, with various denominations of coins and banknotes available. Namibia's mixed economy significantly benefits from the mining, agriculture, manufacturing, and tourism sectors. The country operates under a currency peg with the South African Rand and faces economic challenges such as reliance on the mining sector, vulnerability to external shocks, and high unemployment and income inequality.