Regulatory Alerts2014-01-01
Bank of Zambia Circular 07/2014: Increase in the Overnight Lending Facility Rate
The Bank of Zambia has increased its Overnight Lending Facility (OLF) rate to 600 basis points above the prevailing policy rate and restricted commercial bank access to once per week. The automatic funding route is discontinued, requiring banks to provide satisfactory explanations for additional overnight funds or face automatic rediscounting of securities upon intraday loan defaults. These adjustments aim to curb prevailing market excess liquidity and mitigate inflationary pressures, with conditions subject to periodic review.
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