Bank of Zambia implements policy to drive transparency, effectiveness in foreign exchange market

The Bank of Zambia (BoZ) has issued a gazette notice aimed at enhancing transparency, efficiency and effectiveness of the domestic foreign exchange market in the country.

The Gazette Notice No. 525 of 2024 came into effective on Saturday.

This meant that a person buying or selling foreign currency for Kwacha in quantities up to the prescribed negotiable amount would transact at rates displayed on the Authorised Dealers’ Board rates.

The guidelines for the notice however stated that any amounts above the displayed threshold may be negotiated.

“For example, if the prescribed negotiable amount is US$1, 000, 000, this means that the person or corporate entity trading below US$1, 000, 000 cannot engage in any negotiation for a price but will only use the board rates as displayed by the financial institution that one is dealing with.

“However, if the amount is equal to or exceeds the prescribed negotiable amount (in this example, US$1, 000 ,000), the person or corporate entity can negotiate for a price,” according to the guidelines.

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