BOZ RESTRICTS MONEY CIRCULATION
By Leah Ngoma
The Bank of Zambia has increased the statutory reserve ratio on both local and foreign currency deposits, including government’s deposits and Vostro account deposits by 3% percentage points to 14.5% from 11.5%.
In a circular to commercial banks, Bank of Zambia Deputy Governor for Operations Francis Chipmo says in terms of compliance, the revised statutory reserve ratio of 14.5 percent will be based on the weekly return of selected assets and liabilities as of Wednesday November 8 2023.
Dr Chipimo says this measure is aimed at relieving the persistent foreign exchange market pressure with a view to reining in inflation.
He says the Central Bank will continue to monitor developments in the macroeconomics in general and in the financial market in particular and take appropriate action as and when need arises in line with the bank’s objective of price and financial stability.
PHOENIX NEWS