Regulatory Alerts2006-01-01
Bank of Zambia Circular 05/2006: Modifications to the Broad-Based Interbank Foreign Exchange Market System
The Bank of Zambia issued Circular 05/2006 to modify the Broad-Based Interbank Foreign Exchange Market System, implementing immediate regulatory changes that enhance market making and liquidity management. The circular increases the two-way quote threshold to US$500,000 and reduces the bid-offer spread to K20.00, while mandating that Primary Dealers submit specific daily rates at 09:30, 12:30, and 15:30. Commercial banks must now operate under revised overnight and intra-day exposure limits, accept KYC-based payment instructions for external transactions exceeding US$5,000, and submit daily FX schedules by 09:00 hours alongside monthly Balance of Payments returns.
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