Bank of Zambia Circular on Increase in Statutory Reserve Ratios

BANK Of ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - ADMINISTRATION February 24, 2014 CB Circular No: OS/2014 To: All Heads of Commercial Banks INCREASE IN STATUTORY RESERVE RATIOS The Bank of Zambia wishes to advise all commercial banks that with effect from 10th March, 2014, the minimum statutory reserve ratio on both the kwacha and foreign currency deposit liabilities to the public will be increased by 6 percentage points to 14.0 percent from 8 percent. The increase in statutory reserve ratio is primarily aimed at addressing the prevailing excess liquidity conditions in the money market and its consequential impact on inflation. Commercial banks are further advised that in terms of compliance, the revised statutory reserve ratio of 14.0 percent will be applied to the Weekly Return on Selected Assets and Liabilities as at Wednesday, 5 thMarch, 2014, for the compliance period io" - 16thMarch, 2014. The Bank of Zambia will continue to monitor developments in the macroeconomic environment and stands ready to take other measures as deemed necessary. Dr~-Mabula DEPUTY GOVERNOR - ADMINISTRATION Cc Governor Bank Square. Cairo Road, P.O. Box 30080, Lusaka, Zambia. Tel: +260-211-229930 Fax: +260-211-222808 E-mail: tkmabula@boz.zm. Web: http://www.boz.zm