Region

Jurisdiction

Regulator

1995-01-01

Bank of Zambia Circular 6/1995: Daily Foreign Exchange Dealing

The Bank of Zambia mandates that daily foreign exchange dealing with commercial banks will commence on April 24, 1995, replacing the previous thrice-weekly schedule. This operational shift responds to a policy decision lowering the Zambia Consolidated Copper Mines export retention rate from 70 to 55 percent, thereby increasing the central bank's direct market share. Commercial banks must submit written bids or offers and complete FX market returns daily between 08:00 and 09:00 hours, while all other existing guidelines remain unchanged.

Zambia

Bank of Zambia

GENERAL MANAGER

BANK OF ZAMBIA  
P.O. Box 30080 Lusaka  
Tel: 221908/228896

20 April 1995

C B Circular No. 6/95

To : All Commercial Banks

Dear Sirs

DAILY DEALING IN FOREIGN EXCHANGE

This is to advise that with effect from Monday, April 24, 1995, Bank of Zambia will extend its thrice per week dealing in foreign exchange with commercial banks to daily dealing.

This change has been made because of the recent decision to reduce Zambia Consolidated Copper Mines's (ZCCM's) export retention rate from 70 per cent to 55 per cent so as to promote a more efficient foreign exchange market. Consequently, ZCCM's direct sales of foreign exchange in the market will be reduced while that for the Bank of Zambia, given its increased share of ZCCM export revenues, will increase.

The Financial Markets Department shall be receiving written bids or offers from commercial banks between 08.00 and 09.00 hours as well as the Foreign Exchange Market returns (Forms FMX1 and 2) everyday. All the other guidelines and procedures remain unchanged.

Yours faithfully

G B MBULO  
GENERAL MANAGER