Regulatory Alerts2003-01-01
CB Circular 17/2003: Statutory Reserve Ratio
The Bank of Zambia issued Circular 17/2003 to reduce the minimum statutory reserve ratio on Kwacha and foreign currency public deposits from 17.5 percent to 14.0 percent, effective October 31, 2003. This 3.5 percentage point cut aims to increase money market liquidity, lower borrowing costs, and signal broader interest rate reductions to stimulate economic growth and expand cheaper credit to productive sectors like agriculture and manufacturing. Commercial banks must apply the revised 14.0 percent ratio to their Wednesday asset and liability positions as of October 22, 2003, while the central bank maintains readiness to implement further macroeconomic measures as needed.
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