ECONOMISTS BACK STATUTORY RESERVE RATIO INCREASE

The Economics Association of Zambia -EAZ- says the increase in the Statutory Reserve Ratio by the Bank of Zambia is necessary considering the continued deprecation of the Kwacha.

The central Bank on Wednesday increased the Statutory Reserve Ratio from 9-percent to 11.5-percent meant to address the volatility in the exchange rate.

EAZ Interim National Secretary GIBSON MASUMBU says the move is a corrective measure by the Central Bank considering the depreciation of the Kwacha from December last year.

Mr. MASUMBU has, however, stated that the increase in statutory reserve ratio will hurt many businesses as there will be no liquidity.

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