Regulatory Alerts2017-01-01
Adjustments to the Statutory Reserve Ratio and the Overnight Lending Facility Rate
The Bank of Zambia has reduced the overnight lending facility rate to 600 basis points above the policy rate and lowered the statutory reserve ratio for Kwacha and foreign currency deposits by 2.5 percentage points to 15.5 percent. These adjustments, effective immediately for the lending facility and from 27 February 2017 for reserves, aim to decrease funding costs and stimulate economic credit growth. Commercial banks must comply with the revised ratios while the central bank continues to monitor macroeconomic conditions and stands ready to implement further measures as necessary.
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