Regulatory Alerts2002-01-01
Bank of Zambia Foreign Exchange Rates Circular 06/2002
The Bank of Zambia mandates that all commercial banks limit their foreign exchange transaction spreads to prevent excessive divergence from official dealing rates. Effective 8 April 2002, banks must ensure their posted buying rates do not exceed the central bank's dealing rate by more than two percent, maintain a two percent spread between buying and selling rates, and keep the spread between the central bank rate and their selling rate at or below four percent. Institutions failing to adhere to these limits will be barred from participating in the Bank of Zambia foreign exchange dealing window, as the central bank intensifies monitoring of displayed and reported rates.
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