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Alba Iulia
Friday, February 5, 2021

Bank of Zambia will not ban dollar accounts in Commercial Banks

Headlines Bank of Zambia will not ban dollar accounts in Commercial Banks

The Bank of Zambia has refuted social media assertions that the central bank intends to ban the holding of dollar accounts in commercial banks.

Bank of Zambia Governor Christopher Mvunga said that the fake social media statement should be ignored.

Mr. Mvunga said this in Lusaka yesterday when the central bank announced this month’s Monetary policy rate.

His comments come in the wake of a social media report that the bank plans to expropriate over 2.6 billion dollars in an attempt to lower the exchange rate.

Meanwhile, Finance Minister Bwalya Ng’andu ha said that the Eurobond holders have indicated their willingness to continue engaging the Zambian government on debt restructuring.

Dr Ng’andu said that the government is looking forward to deeper engagement with the committee of the bondholders once the confidentiality agreement has been signed.

He has told Parliament that Government has not paid the coupon that was due on November 13, 2020 for various reasons.

Dr Ng’andu explained that payment of the coupon could have contradicted Government’s earlier message of its incapacity to service the debt.

He said inconsistency regarding the country’s lack of capacity to pay would send a signal to bond holders and other creditors that Zambia lacked a credible and orderly approach to the debt restructuring process.

In a Ministerial statement in Parliament today, Dr. Ng’andu said the decision to pay would weaken Government’s negotiation position beyond the solicitation process.

He said other commercial creditors would have interpreted Government’s decision as lacking in transparency and equal treatment of creditors.

Dr. Ng’andu said Government is fully committed to engaging the bondholders committee meaningfully and transparently to reach a common and orderly approach to the process.

He said Government will continue to provide the bondholders with necessary information regarding the debt, economic and fiscal position as well as plans to restore growth and attain fiscal and debt sustainability.

And Dr. Ng’andu said Vice President Inonge Wina’s assurance that the country would NOT default was based on government’s real expectations following engagements with the Eurobond holders.

He said at that time government did not expect the bondholders to reject its request to defer payments.

Dr. Ng’andu also said he does not expect Zambia’s sovereign rating to drop in the wake of the rejected request.

He also said government is still engaging the International Monetary Fund on the type of facility the country can secure.

17 COMMENTS

  1. A drunkard for a governor and a dullard for a finance minister, the combination of diametrically opposed obsessive positions is a recipe for disaster. The earlier we kick these mangwams out the better for the country, we are in deep trouble.

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  2. LT you left this part out;

    Finance Minister Dr Bwalya Ng’andu has told parliament that he does not know how much money is in the sinking fund that was put up to set aside money for repayment of the many Euro bonds borrowed by the PF led government.

    In a follow up question Wednesday afternoon after Finance Minister Bwalya Ng’andu issued a statement on the country’s financial position after defaulting on its Euro bond payment that was due last Friday, Hon Lufuma wondered why the country defaulted yet there was a sinking fund established under Statutory Instrument (SI) 75 to set aside money for repayment of the bonds and further asked if there was money in that sinking fund.

    “May I know why your government did not adhere to the Statutory Instrument number 75 and consequently…

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  3. Many things that start like a rumour and sre refuted by PF Govt later come out to be true.However,I pray that this expropriation of dollars will never be true bcoz it will spell total doom for our economy! Just,just stop it,if at all it was contemplated!!

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  4. OMG!

    This new bank governor is equally as dull as Lungu. Another incoherent drunkard.

    I cringe just reading his explanation to why Zambia defaulted.

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  5. Does this make sense?????

    “once the confidentiality agreement has been signed.”

    “He said other commercial creditors would have interpreted Government’s decision as lacking in transparency ”

    Can’t even keep his LIES straight !!!

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  6. The opposition have no shame with the lies they are fuelling. Can you imagine the lies if they ever got power . It is indeed a blessing that they will never rule this country. Maybe they can rule in mars when they find human life on that planet

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  7. Peddled by the Watchdog and its surrogates – just see how unhappy they are now that the foolish propaganda has been refuted — busy attacking the Governor instead of dwelling on the statement.

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  8. ALBERT AND KZ ARE BIG CHIPAZEES IN CAGES ODF PRETENCE.PERIOD ZAMBIA HAS DEFAULTED.WHY TRY AND ADJUST WRONG THINGS.LIVE A REAL NOT A BORROWED LIVES

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  9. So LT, you found it okay to “moderate” and remove my comment, but you “moderated” and found IndigoTyrol’s comment to be okay?

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  10. In fact we should just start using the US dollar as our currency for all transactions and do away with the useless kwacha.

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  11. I THINK IT IS SIMPLE ECONOMICS- IN ZAMBIA AN INVESTOR CAN MAKE MONEY IN ZAMBIA AND THE NEXT DAY CHANGE IT INTO USD DOLLAR SEND IT TO A FOREIGN COUNTRY. MINES, BANKS, SUPERMARKETS MTN, AIRTEL AND MANY MORE ARE CHANGING THE KWACHA COLLECTED AFTER SALES INTO DOLLORS WHICH HAS BEEN PUTTING PRESSURE ON THE ECONOMY OF ZAMBIA………WE NEED DILIBERATE PRONOUNCEMENTS WHERE EVEYONE SHOULD KEEP 70 OF THEIR MONIES IN KWACHA AND NOT DOLLARS…..CHANGING KWACHA INTO DOLLARS IS WHAT IS PUTTING OUR KWACHA UNDER PRESSURE IT IS SUPPLY AND DEMAND…….FEW DOLLAR IS BUYING KWACHA WHAT DO EXPECT DOLLAR IS ON DEMAND HENCE KWACHA LOOSING VALUE WHILE DOLLAR IS GAINING

  12. He has two rings because he was too drunk in the morning….I can only imagine what impression he would make when IMF and WB advisers saw his hand on the table. He thinks he Koffe Komide

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