BANK OF ZAMBIA

OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

July 21, 2003

CB Circular: No. 12/2003

To: All Commercial Banks

REVISION OF FINANCIAL MARKETS RETURNS

The advent of the Broad-based Interbank Foreign Exchange Market (IFEM) has necessitated a change to the foreign exchange returns submitted to Financial Markets Department at the Bank of Zambia. In this regard, find attached hereto copies of the revised forms FMX1 and FMX2. In addition, forms FMX3 and FMX4 have been introduced. Submission of these returns commences on 23^rd July 2003.

Kindly be advised that henceforth commercial banks are required to submit the FMX1, FMX2 and FMX3 returns by 17:30 hours on the day of transactions. On the other hand, form FMX 4 shall be submitted on the last working day of the week. Furthermore, with specific reference to FMX2 and FMX4, preliminary returns will have to be submitted by 17.30 hours on the trading day while substantive returns must be submitted the following day by 09:00 hours.

All commercial banks are expected to submit correct returns within the stipulated times as failure to comply with the requirements shall result in the affected commercial bank(s) being levied a fee of K100,000 per day per return for late or wrong submission of return(s).

Denny H Kalyalya (Dr)
DEPUTY GOVERNOR – OPERATIONS

Cc: Governor

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Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: +260-1-226844 Fax: +260-1- 237070 Email: dkalyaly@boz.zm Web: http://www.boz.zm/

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FORM FMX 1

BANK OF ZAMBIA

FOREIGN EXCHANGE MARKET

DAILY RATES RETURN

(Confidential and not available for inspection by the public)

Name of Bank: _________________________

Date: _________________________

Against Kwacha

	BID		OFFER
	Low	High	Low	High
1. US dollars
Counterparties
(a) Non-bank
(b) Bureaux de change
(c) Interbank
2. Other currencies	Low	High	Low	High
(a) UK pound sterling
(b) Euro
(c) South African rand
(d) Zimbabwe Dollar

Authorized signatory: _________________________ Title: _________________________

Authorized Signatory: _________________________ Title: _________________________

Notes

i. Non-banks: All customers other than (b) and (c).

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FORM FMX 2

BANK OF ZAMBIA

FOREIGN EXCHANGE MARKET

DAILY VOLUME TRANSACTIONS RETURN

Name of Commercial Bank: _________________________

Date: _________________________

(All amounts to be reported in the respective currencies)

Counterparties	Particulars	US$	Euro	British pound	SA Rand	Zim dollar	Others (specify)
	1) Opening position (previous day’s closing position)
Bank of Zambia	2) a) Purchases<br>b) Sales<br>c) Net (a-b)
	3) Inter currency transfers
Interbank	4) a) Spot Purchases<br>b) Forward Purchases<br>c) Net purchases (a+b)<br>d) Spot Sales<br>e) Forward Sales<br>f) Net Sales (d+e)
Bureau	5) a) Purchases<br>b) Sales<br>c) Net (a+b)
Non-banks (all others)	6) a) Spot Purchases<br>b) Forward Purchases<br>c) Purchase Cancellations<br>d) Net purchases (a+b-c)<br>e) Spot Sales<br>f) Forward Sales<br>g) Sale Cancellations<br>h) Net Sales (e+f - g)
	8) Closing position in respective currencies
	9) Closing Position in Kwacha
Interbank	Swaps (in US$ - Kwacha)

Net position in Kwacha: _________________________

Net position in US Dollars: _________________________

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FORM FMX 3

BANK OF ZAMBIA

FOREIGN EXCHANGE MARKET

POSITION STATEMENT

(volumes in respective currencies)

Name of Bank: _________________________

Date: _________________________

Currency	Opening	Closing	High	Low
US $
UK £
Euro
SA Rand
Zim $

Authorized signatory: _________________________ Title: _________________________

Authorized Signatory: _________________________ Title: _________________________

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FORM FMX 4

BANK OF ZAMBIA

Forex Market Operation – Weekly Statement

(in U.S.$)

Name of Bank: _________________________

Date	Non-banks	Net	Actual Position A	Projected/Anticipated	Net B	Variance A-B
	P	S	1–2)	P	S	(5–6)
	1.	2.	3.	4.	5.	6.

Note:

• Column 1 & 2 excludes interbank transactions but includes transactions with bureaux.
• Column 4 – Actual open position.
• Column 5, 6 – Based on the commitments by non-banks to Sell (S)/Purchase (P) after market hours, delayed reports from branches, realization/payment advices received from correspondents e.t.c.
• Amounts exceeding US$250,000.00 – indicate buyers/ sellers and amounts as an attachment

Figures must be reported to the nearest 1000.