BoZ limits forex transactions

THE Bank of Zambia (BoZ) has introduced measures to limit over the counter foreign currency transitions effective June 1.

The Central Bank announced yesterday that it had adjusted the over-the-counter foreign exchange cash transaction limits for banks and other financial service providers effect June 1st, 2021.

BoZ Deputy Governor for Operations, Francis Chipimo said the aggregate foreign currency cash transaction of a commercial bank with an account holder shall not exceed the equivalent of US$ 10, 000 per day while that of an individual who is not an account holder shall not exceed an equivalent of US$ 5, 000 per day.

Dr Chipimo also said in a circular that the aggregate foreign currency cash transaction of a bureau de change with an individual shall not exceed the equivalent of US$ 5, 000 per day. He said the aggregate over the counter foreign currency cash transactions of a bureau de change with commercial bank shall not exceed the lower of the equivalent of US$ 20, 000 0r 70 percent of its regulatory capital per day.

Dr Chipimo said the central bank would observe the new limits for a period of two months.

He said the foreign exchange open position of a bureau de change at the close of business on any day shall not exceed 50 percent of its regulatory capital.

“On a calendar quarter basis, the Bank of Zambia shall compute the regulatory capital positions of bureau de change to which the foreign exchange open position limits shall be anchored,” he said.