THE Bank of Zambia (BOZ) has increased the minimum statutory reserve ratio by 2.5 percentage points to 11.5 percent from the current 9.0 percent. BOZ Deputy Governor for Operations Francis Chipimo says the increase is meant to address the increased volatility in the exchange rate and safeguard the stability of the foreign exchange market. Meanwhile, economist Trevor Simumba described the increase as unfortunate but timely. In a circular dated February 1, 2023 addressed to all heads of commercial banks, Dr Chipimo said the increase applied to foreign currency deposits, including government deposits and vostro accounts deposits. “Reference is made to CB Circular No. 14/2019 dated December 9, 2019. The Bank of Zambia wishes to advise all commercial banks that with...