By Amb. Emmanuel Mwamba
BOZ HAS FAILED!
They are trying to cure an economic crisis and volatile exchange rate market through restricting and constricting money supply.
This archaic method will further restrict economic activities as there will be very little or only expensive financing available for those activities.
Much of the work lie on the fiscal side.
Dr. Musokotwane must revise the tax incentives and tax holidays given to the mine houses.
Zambia’s main export upto 70% is copper but it’s contributions to tax revenue is almost insignificant! Day-light robbery.
Bank of Zambia stated;
Minimum statutory reserve ratio by 2.5 percentage points to 17.0 percent from 14.5 percent.
….increase in the statutory reserve ratio is necessitated by the persistence of foreign exchange market pressures which are contributing to higher inflation….
Reference is made to CB Circular No. 30/2023 dated November 3, 2023.
The Bank of Zambia wishes to advise all commercial banks that with effect from Monday,
November 27, 2023, the minimum statutory reserve ratio on both local and foreign currency deposits, including Government deposits and vostro accounts deposits, will be increased by
2.5 percentage points to 17.0 percent from 14.5 percent.
In terms of compliance, the revised statutory reserve ratio of 17.0 percent will be based on the Weekly Return of Selected Assets
and Liabilities as of Wednesday, November 22, 2023.
The further increase in the statutory reserve ratio is necessitated by the persistence of foreign exchange market pressures which are contributing to higher inflation.
The Bank of Zambia will continue to closely monitor developments in the macroeconomic environment in
general and_in the financial markets n particular and will not hesitate to take further
measures should they be deemed necessary, in line with its mandate of maintaining price and financial stability.
Its ironic that Mwamba can call the author of the missive and BOZ a failure. Wasnt Dr. Chipimo advisor to the Minister of Finance under PF?
The only failure is Mwamba who places himself on a pedistel and shows his ignorance
Which regime was in power when zambia defaulted on its sovereign debt
Just a question proud zambians should address
Even if mining incentives were to be revised nothing would change because the mines are not operating at full capacity. In case Mr. Mwamba has forgotten, some dog from Chawama destroyed major mining assets KCM and mopani.