BANK Of ZAMBIA’S TIGHTER MONEY POLICIES THREATEN PRIVATE SECTOR EXPANSION, WARNS CTPD’s ELIJAH MUMBA
STATEMENT Date: Thursday 8/02/2024 CENTRAL BANK’S TIGHTER MONEY POLICIES THREATEN PRIVATE SECTOR EXPANSION, WARNS CTPD The Centre for Trade Policy and Development (CTPD) is concerned over the Bank of Zambia’s recent policy action which significantly raises the statutory reserve ratio (SRR) for commercial banks. Announced through a circular dated February 2nd, 2024, the SRR has been increased by 9 percentage points to 26.0 percent from the previous 17.0 percent. This adjustment affects both local and foreign currency deposits, including government and nostro account deposits. This move comes in response to rising inflationary pressures, with the annual inflation rate escalating...