Regulatory Alerts2009-01-01
Bank of Zambia Introduction of Overnight Lending Facility
The Bank of Zambia introduced an Overnight Lending Facility effective December 1, 2009, to provide commercial banks with liquidity assistance and enhance money market operations. Eligible banks must fully collateralize loans using Treasury bills, government bonds, or OMO instruments, with specific haircut margins applied based on instrument type and maturity. The facility operates daily near the close of business, charging an interest rate set at a 600 basis point margin above the previous day's weighted average interbank rate.
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