By BUUMBA CHIMBULU
THE Bank of Zambia (BoZ) has adjusted upwards the Kwacha and foreign currency statutory reserve ratio in its efforts to relieve the persistent pressure being experienced by the local currency.
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This measure came into effect yesterday.
In a circular to all commercial banks signed by BoZ Deputy Governor-Operations, Francis Chipimo released yesterday, the minimum statutory reserve ratio on both local and foreign currency deposits, including government deposits and vastro deposits would be increased by three percentage points to 14.5 percent.
“This measure is aimed at relieving the persistent foreign exchange pressure with a view to reining in inflation,” Dr Chipimo said.
In terms of compliance, the revised statutory reserve ratio of 14.5 percent would be based on the weekly return of selected assets and liabilities as of Wednesday, November 8, 2023.
“The Bank of Zambia will continue to closely monitor developments in the macroeconomic environment in general and in the financial markets in particular and take appropriate action as and when the need arises in line with the bank’s objective of price and financial stability,” Dr Chipimo in the circular.
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