Regulatory Alerts2001-01-01
Bank of Zambia Core Liquid Assets Ratio Circular 10/2001
The Bank of Zambia has revised the Core Liquid Assets Ratio (CLAR) requirement for all commercial banks upward by ten percentage points to 35%. Effective March 8, 2001, this adjustment addresses ongoing macroeconomic instability, loose market liquidity, and renewed pressure on the foreign exchange market. Future modifications to the ratio will remain contingent upon prevailing macroeconomic stability conditions.
# BANK OF ZAMBIA
P.O. Box 30080,
LUSAKA 10101
Tel. 228888 / 228903 - 20
27 February 2001
CB Circular No. 10/2001
To: ALL COMMERCIAL BANKS
Dear Sir/Madam
## CORE LIQUID ASSETS RATIO
Kindly refer to circular No. SCH/CB/1/98 dated January 14, 1998.
Commercial banks are hereby advised that the Core Liquid Assets Ratio (CLAR) has been revised upwards by 10 percentage points to 35%.
In keeping with the statutory requirement of ten days grace period, the new CLAR of 35% will become effective on Thursday, March 8, 2001.
This adjustment has been necessitated by the need for the Bank of Zambia to further address the continued instability in the macroeconomic environment, particularly with respect to the loose liquidity conditions in the market and re-emergence of massive pressure in the foreign exchange market.
As usual, further adjustments to the CLAR will depend on the situation regarding macroeconomic stability.
Yours faithfully
Dr A Mwenda
DEPUTY GOVERNOR - OPERATIONS
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