Increment in Statutory Reserve Ratio by BOZ, puts seasonal productive raw materials in tight corner!
By Kelvin Chisanga The 3% or 300 basis point increases to be witnessed by the local banking and financial market in Zambia starting from 13th November, will cause a lot of market distortions even if the main aim is a view around medium term targeting toward efforts of stabilizing Kwacha but this is coming at a huge cost to the domestic economy in a number of ways. However, with this policy gauge being put in place to curb inflationary effects, it is strongly believed that both the inflation and forex losses can be tackled with this monetary policy instrumentation though...