Regulatory Alerts2013-01-01
Foreign Exchange Rate Quotations and Margins
The Bank of Zambia directs all authorised foreign exchange dealers to display currency quotations rounded to four decimal places following the January 2013 Kwacha rebasing. Dealers must also ensure that the spread between buying and selling rates, inclusive of all commissions and charges, remains within a two percent margin. This directive standardizes market pricing by enforcing international best practices and prior regulatory guidelines across the foreign exchange sector.
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS January 04, 2013 CB Circular No: 0112013 To All Authorised Foreign Exchange Dealers FOREIGN EXCHANGE RATE QUOTATIONS AND MARGIN Following the rebasing of the Kwacha on 1 51 January 2013, the Bank of Zambia has observed that some authorised foreign exchange dealers are not displaying the foreign exchange rate quotations correctly. As advised in the Currency Rebasing Technical Guidelines, all foreign exchange rate quotations should be rounded off to four decimal places in line with international best practice. In this regard, all authorised foreign exchange dealers are hereby directed to display foreign exchange rate quotations using four decimal places. Further, in line with CB Circular No. 1112012, the Bank of Zambia would like to reiterate that all authorised foreign exchange dealers should ensure that the spread between the buying and selling rate, inclusive of all commissions and any other charges, does not exceed a 2 per cent margin. Cc Governor Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: 260-211-226844,228888 Fax:260-21l-237070 E-mail: bngandu@boz.zm. bttp:/Iwww.boz.c:om