By BUUMBA CHIMBULU
THE Bank of Zambia (BoZ) has revised upwards the Government securities auction thresholds for both Treasury Bills and bonds with effect from September 13, 2021.
BoZ Assistant Director – Communications, Besnat Mwanza, said in Lusaka yesterday that the thresholds have been revised to realign them with economic changes and passage of time since they were instituted.
Ms Mwanza indicated that the maximum bid amount for non-competitive window had been adjusted to K499, 000 from K29, 000 per bidder for a maturity tenor.
She, however, stated that the minimum bid amount for non-competitive bids were unchanged at K1, 000.
Ms Mwanza the minimum bid amount for competitive bids had also been adjusted to K500, 000 from K30, 000 per bidder for a maturity tenor.
“The Bank of Zambia wishes to advise the general public and investors in Government securities of the following changes to the Government securities auction thresholds for both Treasury Bills and Bonds,” she said.
Ms Mwanza said the factors that have been taken into account include the impact of inflation over the last 20 years since they were revised.
Ms Mwanza said in line with Government’s objective of enhancing financial inclusion, the revision would encourage wider participation of smaller retail investors who may prefer to participate in a non-competitive window as price takers with relatively higher amounts of up to K499, 000.
She said the changes would take effect from September 13, 2021.
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