The Bank of Zambia (BoZ) has increased the Statutory Reserve Ratio from 9 percent to 11.5-percent to address the volatility in the exchange rate which intensified.
BOZ Deputy Governor – Operations FRANCIS CHIPIMO says 2.5 percentage points increase in the statutory ration is also meant to safeguard stability of the foreign exchange market.
Dr. CHIPIMO says the foreign exchange market has come under sustained depreciation pressure despite the Central Bank support to the market through sales of forex proceeds, mostly from mining companies.
He adds that the market has been characterized by weak forex supply amidst strong demand by market players for various purposes including critical imports of fuel, medicines and agriculture inputs.
Dr. CHIPIMO adds that the trend has the potential to undermine the emerging stable macroeconomic environment if left unchecked.
This is contained in a statement availed to ZNBC News in Lusaka.