Regulatory Alerts2014-01-01
Inclusion of Government and Vostro Deposits in Statutory Reserves
The Bank of Zambia requires commercial banks to include Kwacha and foreign currency government deposits, as well as Vostro account balances, in statutory reserve calculations at a 14% rate. Effective July 9, 2014, institutions must also meet statutory reserve ratio requirements on a daily basis. The central bank will actively monitor macroeconomic conditions and adjust policies as needed to ensure ongoing compliance and financial stability.
BANK O/ZAMBIA OFFICE OF THE DEPUTY GOVERNOR - ADMINISTRATION May 30, 2014 CB Circular No IS ~/2014 .-XD~~- ---~.~---.-- _'.AlLHeads .of.Commercial.Banks.L; INCLUSION OF GOVERNMENT DEPOSITS AND VOSTRO ACCOUNT DEPOSITS IN THE COMPUfATION OF STATUTORY RESERVES AND RE-INTRODUCTION OF DAILY COMPLIANCE ON STATUTORY RESERVES RATIO The Bank of Zambia wishes to advise all commercial banks that with effect from Monday 9 JIDle 2014, Kwacha and Foreign Currency Government Deposits and Vostro ACCOIDlt Deposits will be subject to Statutory Reserves at the prevailing rate of 14%. Further, effective Monday 9 JIDle2014, all commercial banks will now be required to comply on a daily basis with respect to the Statutory Reserve Ratio. The Bank of Zambia will continue to monitor developments in the macroeconomic environment and stands ready to take appropriate measures as and when deemed necessary. 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