Regulatory Alerts2001-01-01
Number of Bids to Be Submitted on Treasury Bills and Bonds Auctions
The Bank of Zambia has reduced the maximum number of bids that commercial banks and primary market participants may submit during Treasury bills and bonds auctions. Effective from Tender 32/2001 and 09/2001/BA, each participant is restricted to submitting only one bid per maturity category. This limitation caps Treasury bill submissions at four bids across the 28, 91, 182, and 273-day tenors, and bond submissions at three bids across the 12, 18, and 24-month tenors per auction.
# BANK OF ZAMBIA
Tel. 228888/228903-20 P O Box 30080 Lusaka
10101
31 July 2001
CB Circular No.20/2001
To: All Commercial Banks and Participants
Dear Sirs/Madams
## NUMBER OF BIDS TO BE SUBMITTED ON TREASURY BILLS AND BONDS AUCTIONS
Refer to circular number SCH/CB/15/96 dated 2 December 1996 in which the Bank of Zambia advised all commercial banks of the modifications to the Treasury bills and bonds trading procedures in particular clause 4 which stated the maximum number of bids each commercial bank was allowed to submit at each Treasury bill and bond auction.
The Bank of Zambia wishes to advise all commercial banks and the primary market participants in Treasury bills and bonds that effective Tender number 32/2001 for Treasury bill and 09/2001/BA bond auctions the number of bids has been reduced to one (1) bid only per maturity category per tender. This means that each participant can only submit a maximum number of four (4) bids on Treasury bills, that is submit not more than one bid on each of 28 days, 91 days, 182 days and 273 days and Three (3) bids on bonds, that is submit not more than one bid on each of 12 months, 18 months and 24 months per auction.
Yours faithfully
Dr. A. Mwenda
DEPUTY GOVERNOR - OPERATIONS
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