Bank Of Zambia Head of Communications Kanguya Mayondi
Bank Of Zambia Head of Communications Kanguya Mayondi

The Bank of Zambia ( BOZ ) Head of Public Relations Kanguya Mayondi says bank deposits is the safest way of securing cash as well as its circulation.

Mr. Mayondi says it is for this reason that the central bank is urging all eligible citizens to deposit their money at their respective commercial banks to ensure safety and circulation of the local currency in the banking system.

BOZ does not condone or encourage people keeping money at home or in holes because it is unsafe and the money should be released in circulation so that it is accounted for, he said.

“Money is not meant to be kept at home, it should be released in circulation so that it is accounted for through the banking system, when money is deposited in the bank it will eventually work for you,” he said.

In interview with ZANIS in Lusaka, today, the BOZ Head of Public Relations added that once the money is in circulation, it makes it very easy for the Central bank to trace and replace damaged or deteriorated currency in circulation.

“What we do through the banking system, if at any given time the currency in circulation deteriorates we can withdraw and replace that money, but if it’s not in circulation then we have a problem,” he said.

He said this in response to people’s recent practice of storing money in locally made Tin safes and those that bury in holes for safe keeping.

Recently the Central Bank made a policy announcement that it has reduced the Policy Rate from 12.5% to 11%. It was further stated that Statutory Reserve Ratios have also been reduced from 12.5% to 9.5%.

Policy Rate (also referred to as a Central Bank Policy Rate) is the rate that is used by the Central Bank to implement or signal its monetary policy stance.

This rate is a monetary policy instrument under which central banks regulate the availability, cost and use of money and credit.

Similarly, Statutory Reserve Ratios are a monetary policy instrument utilized by central banks. Statutory reserve ratio is the rate at which commercial banks require to maintain liquid assets as a prerequisite to providing credit to customers.

The reduction in the policy rate has the potential to alter short-term interest rates in an economy, thereby influencing a level of economic growth and inflation. Although a low policy rate signifies economic growth, it may lead to slight but minimal increases in inflation in some cases.

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9 COMMENTS

  1. Bwana Mayondi people doing that means that are not sure and comfortable about the banking controls in Zambia. Tell me why people should comfortably take money to the bank when people are complaining of lossing money. I.e inter market bank abnormal widraw charges and savers get almost nothing on their savings.

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    • Banks are abusing the masses who have accounts with them in term of high charges including the those getting loans. Additional high charges on every transaction made and very soon people will be charged even on depositing. I would rather find my own secret way of keeping the money as opposed to deposit my profits in the banks which have stopped adding value to my savings.

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  2. This is another requirement of the IMF ,it also means thst government will tax monies in accounts. IMF stipulated expanded tax system and improved domestic savings amongst a raft of other conditions. You put money in bank ZRA will ask where it comes from ,,,if you cannot explain properly, seizure of money, if you can explainmthen it will be taxable as income. Watch and see

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  3. Mr Mayondi. Why would I deposit my money when almost a year later, Intermarket Bank is yet to open? Deposits in that account, I understand, were even being used by BoZ for some funny bureaucratic business at Central Bank. So, if you want to talk about deposits being the safest way to keep money, open Intermarket Bank or respectfully keep quiet on the matter of our money being safe in commercial banks.

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  4. Definitely not up to the truth Mr Mayondi – Why has BOZ failed to monitor and caution Banks before they crash? Why has it failed to resuscitate Inter Market up to now if bank depositing is the way out? Any depositor who has lost in Inter Market Bank or any other crashed bank will have a bone to chew with you Mr Mayondi – You are speaking to please your employers not the unlucky depositors of Inter Market Bank

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  5. Bosses
    Take your message to Indians who are in a habit of keeping money in their homes.
    Most Zambians have accounts..Why are you scared of the Indians.

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  6. Statutory reseve6 deposits ar held by BOZ so that banks dont fail. Thst js the whole idea of the SRD so that no bank can collapse. What does this say about BOZ and MMD/PF government. Who was using the money and for what reason. Do we have Royal Commissions of Inquiry in Zambia….

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  7. I don’t blame people for keeping their money at home. The recently introduced law by government states that anyone wishing to have a bank account must now get registered with ZRA with a TPIN number before you open a bank account ZRA can tax you and check how much you are depositing. This is yet another ridiculous scheme to try and further squeeze the Zambian people. it’s no wonder people are staying away from
    Banks

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