Regulatory Alerts2024-01-01
CB Circular No. 02 of 2024 – Adjustment to the Kwacha and Foreign Statutory Reserve Ratio
The Bank of Zambia has increased the minimum statutory reserve ratio for commercial banks by nine percentage points to 26.0 percent, effective February 5, 2024. This adjustment applies to both local and foreign currency deposits, including government and vostro accounts, and is calculated based on the Weekly Return of Selected Assets and Liabilities as of January 31, 2024. The rate hike addresses persistently high foreign exchange market demand pressures that are driving inflation, with the central bank reserving the right to implement further stabilization measures as needed.
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