Regulatory Alerts2015-01-01
Bank of Zambia Adjustment to Statutory Reserve Ratio and Overnight Lending Facility Rate
The Bank of Zambia has increased the statutory reserve ratio for all commercial banks by four percentage points to 18 percent, effective April 8, 2015. The central bank also adjusted the overnight lending facility rate to six percentage points above the current 12.5 percent policy rate. Banks must comply with these adjustments while the regulator continues to monitor macroeconomic developments and stands ready for further measures.
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/cm
20th March, 2015
CB Circular No: 07/2015
To : All Commercial Banks
ADJUSTMENT TO THE STATUTORY RESERVE RATIO AND THE OVERNIGHT LENDING FACILITY RATE
Kindly refer to CB circulars Nos. 05/2014 and 15/2014 dated 24th February and 30th May, 2014, respectively.
The Bank of Zambia wishes to advise all commercial banks that the statutory reserve ratio on both Kwacha and Foreign Currency Deposits, including Government Deposits and Vostro Account Deposits, has been increased by 4 percentage points to 18 percent with effect from Wednesday, 8th April, 2015.
Further, the Bank of Zambia has adjusted the Overnight Lending Facility Rate to 6 percentage points from the current 9.5 percentage points above the Policy Rate, which currently stands at 12.5 percent.
For further clarification, banks are advised to contact the Bank of Zambia’s Financial Markets Department.
The Bank of Zambia will continue to monitor developments in the macroeconomic environment and stands ready to take other measures as deemed necessary.
(Signature)
Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR – OPERATIONS
Cc: Governor
Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax:260-211-237070 E-mail:dgo@boz.zm Web: http://www.boz.zm