Forex deposits go up

THE Bank of Zambia has with immediate effect introduced measures to bring order, stability and transparency in the foreign exchange market as well as to reduce pressure on the local currency , says deputy governor operations Bwalya Ng’andu.

Dr. Ng’andu said that in the recent past the foreign exchange market had come under enormous pressure due to unrelated economic fundamentals.

In order to correct the situation, Dr Ngándu  said the central bank would with immediate effect among other action monitor all commercial banks operations closely.

Dr. Ng’andu said over the counter foreign currency cash transactions limits should not exceed US$100 000 for registered companies or organizations  and not exceeding US$20 000 or equivalent in other currencies for individuals.

He said for daily cash purchases from non-account holders for both registered and companies, organizations and individuals shall not exceed a thousand dollars or its equivalent in other currencies.

The governor said for daily cash withdrawals by or cash sales to cash account holders should not exceed US$5000 or its equivalent for both individuals or organisations and companies.

“Daily cash sales to non-account holder for either registered companies and Organisations as well as individuals they shall not exceed a thousand dollars or its equivalent in other currencies.

“”In engaging in these transactions, commercial bank must ensure that they comply with the law and  directives with regard to know your customer requirements and reporting requirements as prescribed by the Financial Intelligence Centre Act of 2010 and the Bank of Zambia Anti-Money Laundering Directives,” he said