THE Zambia Institute for Policy Analysis and Research (ZIPAR) has warned that the increase in the Statutory Reserve Ratio (SRR) will lead to a reduction in the Gross Domestic product. The Bank of Zambia (BOZ) recently announced an increase in the minimum Statutory Reserve Ratio by 2.5 percentage points to 11.5 percent from 9 percent. BOZ Deputy Governor for Operations Francis Chipimo explained that the increase was meant to address the increased volatility in the exchange rate and safeguard the stability of the foreign exchange market. But ZIPAR Executive Director Dr Herrick Mpuku stressed that his institution does not believe that adjusting the SRR is the most appropriate instrument for stabilising the exchange rate. Dr Mpuku says what the economy...