BOZ increases statutory reserve ratio

By Masauso Mkwayaya

The Bank of Zambia has increased the statutory reserve ratio on both local and foreign currency deposits by NINE percentage points to 26 percent from 17.

The decision which comes into effect on February 5, 2024 includes Government deposits and vostro accounts deposits.

In a notice to Heads of Commercial Banks, Bank of Zambia Deputy Governor Operations, FRANCIS CHIPIMO said the  increase in the statutory reserve ratio is necessitated by persistently high demand pressures in the foreign exchange market which are contributing to higher inflation.

Dr. CHIPIMO said the Bank of Zambia will continue to closely monitor developments in the macroeconomic environment and financial markets in line with its mandate of maintaining price and financial stability.

This is according to a statement issued by Dr. CHIPIMO.

The post BOZ increases statutory reserve ratio appeared first on .