BOZ Will Not Ban Dollar Accounts At Commercial Banks

The Bank of Zambia has dismissed rumours that it intends to ban Zambians from holding US dollar accounts at commercial banks.

BOZ Governor Christopher Mvunga said the fake news circulating on social media should be ignored, as he prepared to announce the bank’s monthly monetary policy rate yesterday. 

Fake reports on social media have alleged that the bank is planning to seize US$ 2.6 billion in an attempt to lower the Kwacha-Dollar exchange rate.

The exchange rate currently stands at roughly K21 to the dollar. 

In the same news conference, Mr Mvunga announced that the bank’s main lending rate would remain unchanged at 8.0%. 

He added that successfully navigating debt restructuring following sovereign default was essential for the country to return to fiscal fitness. 

Meanwhile, Finance Minister Bwalya Ng’andu has reported that Eurobond holders are willing to continue engaging with the Zambian government on debt restructuring. 

It comes after Zambia officially defaulted on its foreign debts last Friday, missing a payment of more than $40m to its creditors. 

Mr Ng’andu maintains that paying the $40m would have weakened Zambia’s negotiating position, which maintains that the country is unable to service its debts as they stand.

He said the government would continue to provide bondholders with necessary information regarding the country’s debt, economic position, and plans to restore growth.

He expects bondholders to accept the government’s request to defer payments.