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Alba Iulia
Friday, February 19, 2021

Bank of Zambia Remains Resolute to purchase more Gold Deposits to Enhance Zambia’s Reserves

Economy Bank of Zambia Remains Resolute to purchase more Gold Deposits to Enhance...

The Bank of Zambia Governor (BOZ) Christopher Mvunga said that the Central Banked remains resolute to purchase more gold deposits to enhance the country’s reserves. Mr Mvunga explained that BoZ has since purchased 47 kilograms of gold from the Zambia Gold Company Limited, under the auspice of ZCCM Investments Holdings.

He told journalists at a media briefing in Lusaka yesterday that the purchased gold is in the vault of the Central bank. Mr Mvunga emphasized that the purchase of gold is an ongoing process.

“We have so far bought 47 kilogrammes of gold and this is a continuous process. This is being done under the ZCCIMH and it is key to our foreign reserves,” he said.

And BoZ Deputy Governor for Operations Francis Chipimo said the Central Bank will purchase more gold from Kansanshi mines before the end of February. Dr Chipimo further explained that the purchase of gold has just begun, and will go on for a long period of time. In December last year, the Bank of Zambia signed a Gold Purchase Agreement with Kansanshi Mining PLC, a subsidiary of First Quantum Minerals.

BoZ Governor, Christopher Mvunga, signed the agreement on behalf of the Central Bank while, Director of Operations at First Quantum Minerals, Mr Rudi Badenhorst, signed on behalf of Kansanshi Mining PLC. As at end of 2019, the BoZ’s gold holding had risen to 34,000 tonnes from a low of 28,000 tonnes recorded in 1997.

Meanwhile, Zambia has scaled back, postponed or cancelled projects to reduce the country’s debt exposure as it holds talks to secure a programme from the International Monetary Fund, the central bank governor said on Wednesday.

Zambia, which became Africa’s first pandemic-era sovereign default late last year, began discussions with the IMF last week and has requested debt relief under a new common framework from the Group of 20 major economies.

“Our understanding is that actions are being taken to scale down and reduce the debt exposure of the country, if not stop it for now,” Bank of Zambia Governor Christopher Mvunga told journalists, adding that discussions with the IMF had been “cordial”.

“If I look at the disclosure of the debt portfolio, it’s not moving upwards other than probably existing disbursements. So my reading of that is that the matter is being addressed,” he said following a meeting of the monetary policy committee.

The bank raised lending rates by 50 basis points to 8.5% on Wednesday, saying it was ready to tighten policy further to tame rising consumer inflation driven by “cost-push” pressures and a sharp depreciation in the currency.

Mr. Mvunga said annual overall inflation accelerated to a four-year high of 17.6% in the fourth quarter of 2020 from 15.7% the quarter before. Inflation is projected to deviate further from the 6% to 8% target range over the next eight quarters, he said.

The partial easing of COVID-19 restrictions, meanwhile, saw a softer deterioration of private-sector business in the second half of 2020.

“Indicators of domestic economic activity point to a less severe contraction, but weak recovery is projected in the medium-term,” Mr. Mvunga said.

Gross international reserves declined by $117.7 million in the fourth quarter to $1.2 billion, or the equivalent of 2.4 months of import cover, caused mainly by foreign exchange interventions and debt service.


  1. Gaddafi went on a similar path and the western imperialists got rid of him. Let us protect ourselves and be very wary of them. Remember they are now cleverly using people that look like you and me to forward their evil agenda. I am talking about using evil upnd diasporan to spread evil ness to us.

  2. i highly doubt that the $1.2billion is still in reserve when Zambia hos now defaulted twice on the Eurobonds. i wonder if heads are also working at BOZ over the monetary police issue. now is the time for govt to ask itself about how they get out of this self created hole by either continuing to operate an expansionary policy or contractionary policy by BOZ. either way they both have effects but which is more grave and which favors the current economic picture in the country.

  3. I have said before and I say again. There is nothing wrong with high inflation. What is most important in any country is stable currency rate so that those who import and export can plan properly. There are too many irrelevant factors that affect inflation that have no direct bearing on the immediate day to day livelihood of many citizens. Many Zambians are unbanked and they only use the banks to draw salaries from. No one banks in order to grow their wealth because interest rates on savings are too low, while borrowing costs are too high. What we need in Zambia is for people to have honesty and integrity. Pay salaries on time. Pay rent on time. Pay back what you borrow on time. Spend within your means and avoid spending on non-essentials. All will be well.

  4. This Governor is the most inexperienced we have, its like Lungu likes people who are not competent, how can you have a person with a mere ACCA as Governor of the Bank of Zambia sure mwebantu?

  5. What do you expect when thieves/crooks/ drunkards are put in charge of the country and respective ministries.

    Zambia has gone backwards. The bloody economy is in tatters. The Eurobond coupon payments are not paid deliberately so that they can finance their vote bribing tactics.

    Lungu has used COVID as an excuse to not pay what it’s due. But the thief goes and buts 9000 bicycles. I wonder where this money came from or was it a donation from well wishers

  6. Price of gold today is approx ?57000 per kg. So all we have in our reserves today is ?2,760,000. Or equivalent to 2 overpriced fire trucks. Is this a joke or what?

  7. “As at end of 2019, the BoZ’s gold holding had risen to 34,000 tonnes from a low of 28,000 tonnes recorded in 1997.” Very poor reporting – if BOZ had this much Gold, all our problems would be solved. It should be 34,000 kgs and 28,000 kgs (or 34 and 28 tonnes), respectively. Reporter, check your report.

  8. “As at end of 2019, the BoZ’s gold holding had risen to 34,000 tonnes from a low of 28,000 tonnes recorded in 1997 “ Please check your numbers or your units.

  9. Zambia’s forex reserves were at record levels under Rupiah Banda/MMD,then came illiterate PF thugs and the reserves are record lows.


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