Regulatory Alerts2006-01-01
Penalty on Late Settlement of Foreign Exchange Deals
The Bank of Zambia has immediately revised the penalty calculation basis for delayed foreign exchange settlements across all commercial banks. The updated framework replaces the previous interest-based method, which referenced the Bank for International Settlements USD 2 Day Notice Account, with a rate derived from London interbank benchmarks. Commercial banks must now apply this revised penalty structure to accurately assess and collect fees on late-settled foreign exchange deals.
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