BOZ Governor warns Banks and Currency Dealers against creating artificial demand for forex

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Bank of Zambia Governor  Michael Gondwe
Bank of Zambia Governor Michael Gondwe

Bank of Zambia Governor, Michael Kaumba has warned Commercial Bank foreign exchange dealers against engaging in any conduct that can destabilize the economy.

Dr. Gondwe says dealers should act within the foreign exchange market code of conduct and the interbank foreign exchange market framework.

He said this during meet the Governor Dinner hosted by the Financial Markets Association of Zambia also known as the ACI Zambia.

Dr Gondwe also warned against mispricing or artificially inflating the size of demand or supply volume the intent to mislead market participants.

He also warned against conniving with major suppliers of forex with a view to create an artificial shortage of Foreign Exchange in the market.

And the Bankers Association of Zambia Chairman, Shankardas Gupta says Zambia financial sector need to diversify financial products.

He says at the moment both the money and capital markets are underdeveloped.

And ACI Zambia President, Mwape Kambafwile says members of the association will uphold the highest ethical standards.

On proposes that Commercial Banks list on the Lusaka stock Exchange, Mr. Kambafwile says this should not be imposed on banks.

28 COMMENTS

  1. President Sata walked into the Zanaco bank to cash a check. As he approached the cashier he said, “Iwe mukashana, couldu you cash this check for me?”
    Cashier: “It would be my pleasure sir bakateba but would you please show me your ID?”

    Sata: ” Ichishinka fye mukashana jasti like our policies mu PF, I did not bring my ID with me as I didn’t think there was any need for me to. I am Sata the King Cobra, shi Mulenga , the President of the Zambia !!!!”

    Cashier: “Yes sir bamunshololwa, I know who you are, but with all the PF government and regulations and monitoring of the citizen by ZICTA, we the banks are also watching for impostors and forgers as per our new banks requirements in line with PF regulations etc., I must insist on seeing your ID.

    Sata : Ata iwe kakashana, just…

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    • ask anyone here at the bank who I am and they will tell you. Everybody knows who I am, the seating President and where your manager by the way?”
      Cashier: “I am sorry your excellence Mr. Ukwa these are the bank rules and I must follow them.”

      Sata : ” Kutumpa nomba iwe, bushe eko wali elyo twalelwisha ba MMD, I order you to cash this check now !”
      Manager comes over and immediately apologizes and offers a solution to alleviate further problem with the now fuming President.
      Manager : “Mwe Kanabesa, tata wabonse, mwebo tasalile ukwisasova amafya yesu. We can help you Mr. President but here is an example of what we can do. One day, Kalusha Bwalya came into the bank without ID. To prove he was Kalusha he pulled out his soccer ball from his car, juggled that ball on his head,…

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  2. shoulders, and thighs and eventually made a beautifull kick across the bank into the hands of one of our teller. With that shot we knew him to be Kalusha Bwalya and cashed his check.

    Another time, Edgar Kazembe, a reknown and reigning Zambia Tennis Champion came in without ID. He pulled out his tennis racquet and made a fabulous serve whereas the tennis ball landed in my trash can. With that shot we cashed his check.

    Ester Phiri, the boxing queen also came in without ID. She pulled out her boxing gloves and knocked out our guard with one punch. With that punch we cashed her check

    So Bakateka, what can you do to prove that it is you, and only you, as the President of Zambia ?”

    Sata stands there thinking, and thinking, and finally says, “Muchishinka fye napalifye ba PF, I…

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  3. I can’t think of a single thing. I don’t have a clue what to do. This is bad because I feel like Chimbwi no plan.

    Manager: “Will that be large or small bills, Mr. President?

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  4. 1)warned Commercial Bank foreign exchange dealers against engaging in any conduct that can destabilize the economy.
    What conduct is that? mention it if BOZ knows it and prosecute – baba I think you have no clue, you are merely just saying things from books.
    2)warned against mispricing or artificially inflating the size of demand or supply volume the intent to mislead market participants
    Which financial institutes are involved in this? find them and prosecute them than just talk without acting
    3) warned against conniving with major suppliers of forex with a view to create an artificial shortage of Foreign Exchange in the market
    which suppliers have they connived with? give us data ba governor this is part of your work. guess work as usual. This man has no idea of running boz

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    • Ba Boz your fellow central banks in charge of good economies know who is who in the financial market of their countries, who they deal with and so forth. This way they know who is doing wrong and they pounce on them quickly with heavy fines. Now you are just merely talking….usual GRZ talk

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  5. Mr.President sir, i know that my collegues hate me, and i do know why they hate me. They me mr president because iam too loyal to sir, late christopher chabina telling president chiluba 17 yrs ago……

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  6. sorry i meant to say iam too loyal to you sir, ………..today brother whinter kabimba says president sata knows me more than my father.. utu chawa ……..politician nga alefwaya ukulys

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  7. This just shows how incompetent an ignorant this man is!

    In a free market these things can never happen. What causes such anomalies is unwarranted intervention by people such as these PF clowns that really have no clue on how markets work.

    Dinosaurs in charge of Zambias economy like Chikwanda are the perfect recipe for disaster. Fire these clowns NOW, including our incompetent President before it becomes a total national disaster!

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    • True, these Savages have dragged Zambia back to the days of Shortages, & Dictatorship under Unip. Why does one wonder, when “ARCHITECTS OF FAILURE” like Chikwanda are @ the helm??

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  8. Gondwe in league with Chief Money Launderer giving lecture to honest bankers. Who does not know how you have ignored shareholding structure and capital requirement by a foreign owned Finance Bank? Who does not know about fake 5 million capital letter issued by Barkat Ali to PTA Bank and you approved loan to Zambezi Cement? Who does not know you approved line of credit for Crude Oil Import that is costing Zambian Government millions of dollar in excessive interest rate charged by Finance Bank and shared with you even after you left PTA Bank? Who does not know that Stanbic Bank offer to Ministry of Energy on Crude Oil was 200 times better than Finance Bank, you knew and became a party to Money Launderer’s bribing of PS, VP and President? Clock is ticking and soon Hour will come.

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  9. Play by the legal rules. If the statutes are being manipulated let the long arm of the visit offenders. In a free market many initiatives are hatched but they must all be within the regulated framework. Offenders need be punished, catch one and let us know their wrongs. Shouting alone won’t help.

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    • ya,,, i also have the same question,, who is Micheal Kaumba and how is the BOZ governor between kaumba and Gondwe??

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    • Apparently “Michael Kaumba’ and “Dr. Gondwe” rhyme so much that the writer confused them!!

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  10. How on earth can central bank governor make such a statement that hardly makes any sense. Instead of talking about enabling policies that his Institution is working on, he comes out with such vague stuff .

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  11. oookeeey, Im clueless when it comes to economics, so all y’all in the know please bruise each other all you can

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  12. There are two governors? The message these two governors dished out does not justify the lavish dinner they had. It sounds more like speculation.

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  13. I am offering $50000 to the one who brings me evans mfula’s head, the one who used to own evaduco ltd

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  14. Gondwe has just failed to provide to deliver sound leadership in the economic and currency monetory policy!
    There is no need to be warning Commercial banks – all that is required is ensure that there is sufficient FOREX at all times an this can only be done through a sound Foreign Currency management policy which Gondwe has failed to provide so far!
    it is not a rocket science but can be done…Dr Fundanga left one in place and both Kuwani and Nkhoma had good policies
    Gondwe is trying to use commercial banks as scape goats instead of fighting inflation and sanitising the currencies both of which have spun out of control at present! This chap is not even qualified and knowledgeable enough…how on earth did we end up with such a Governor?

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  15. @Zimba :: yes Evaduco was a kitwe based company owned by a mr mfula evans two days ago i met him at the funeral of his relative in ndola he is such a harmless creature why would any one call for his head….mbuya talk to me nicely but dont mention bulood

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