fbpx
Home Business Zambia raises commercial banks’ reserve ratio to address forex volatility

Zambia raises commercial banks’ reserve ratio to address forex volatility

by Tom Chiahemen
0 comment 1 minutes read

Zambia’s central bank on Thursday raised statutory reserve ratio, the rate at which commercial banks keep funds in the central bank, to address volatility in the foreign exchange (forex) market.

Bank of Zambia’s Deputy Governor Francis Chipimo said in a circular to all commercial banks that the ratio would be increased by 2.5 percentage points to 11.5 percent.

“This measure is aimed at addressing the increased volatility in the exchange rate which intensified in December 2022 and has persisted in 2023,” he said.

The increased reserve ratio comes into effect on Feb. 13.

Chipimo said the country’s currency has come under sustained depreciation despite the central bank’s support to the market through sales of foreign exchange. 

Xinhua

You may also like

Leave a Comment

About Us

FRONTVIEW AFRICA is a Pan-African online Newspaper and Television with sharp, clear and factual News.

@2024 – All Right Reserved.