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Sunday, March 14, 2021

Press Statement on BoZ Governor’s Remarks on Money Printing

Columns Press Statement on BoZ Governor’s Remarks on Money Printing

By Anthony Bwalya UPND Presidential Spokesperson

The UPND has noted the recent remarks by the Bank of Zambia (BoZ) Governor with regards to allegations of money printing at the central bank in light of the colossal sums of money being displayed by members of the ruling Patriotic Front.

The facts, which the Governor may or may not be aware of are as follows:

  1. Currency in Circulation (total cash issued by the BoZ and includes vault cash held in deposit-taking institutions) has increased by 52% (K7.7bn to K11.8bn) in the 12 months to February 2021. This is by far the fastest increase of physical cash in circulation in the past 10 years.
  2. BoZ lending to the Government (through purchase of Government Debt by creation / printing of money) has increased from K143m in January 2015 when President Edgar Lungu took office to the current figure of K24bn as at February 2021, an increase of 15,700%. This is completely out of tandem with the mandate of the BoZ and has never happened to this extent before in Zambia.
  3. The BoZ Act of 1996 (Part 7, Clause 49 and 50) does not allow for BoZ to lend to the Government except in “Special Circumstances”, and where such “Special Circumstances” as outlined by the Finance Minister require such lending, it shall not exceed 15% of the ordinary revenue of the government in the previous year. Where the 15% limit is exceeded, the Governor is required by the Act to advise the Finance Minister accordingly and not allow any further increase.
  4. Government’s 2019 revenue amounted to K60bn, allowing a maximum lending limit of K9bn. As at December 2020, BoZ had lent K22.6bn, K13.6bn over the legal limit.
  5. Creation / printing of money does not have to be the actual printing of physical cash, but can be done electronically through purchase of government debt.

Based on the above facts, can the Governor clarify the following:

  1. Why has the growth of currency in circulation (physical cash) grown at a record rate over the past year if BoZ has not been printing physical money, considering there has been an emphasis on the use of e-payment channels due to the Covid-19 pandemic?
  2. What “Special Circumstances” as defined in the BoZ Act have required the BoZ to lend to the Government, and why has the public not been made aware of these “Special Circumstances”?
  3. What has driven the astronomical growth in BoZ lending to Government (and consequent money creation)?
  4. The BoZ has far exceeded its legal limit of lending to the Government. Did the BoZ comply with the requirements of the Act and inform the Finance Minister of this breach?
  5. Why has the BoZ continued to lend to the Government against the provisions of the law, risking economic stability, higher inflation and the credibility of the Zambian Kwacha as a stable Currency?
  6.  If the BoZ is not creating / printing money (electronically), how are they lending to the Government?

The UPND is deeply concerned around the activities of the BoZ in collaboration with the Ministry of Finance and the potential impacts of the money creation activities as outlined by the Bank’s own statistics.

Inflation is already rampant and money in circulation has visibly increased, particularly in the hands of Government and PF party officials, consistent with the statistics from the Boz. The regulations within the BoZ Act of 1996 were specifically created to ensure events as unfolding today of uncontrolled money creation / printing were never allowed to happen again in Zambia.

Whilst we await clarification from the Governor on the above, we continue to encourage the officials from the highly respected BoZ to maintain their independence and ensure compliance with the BoZ Act.


  1. It’s no rocket science a drunkard has replaced another drunkard at BOZ.

    Above facts needs to be clarified. Maybe that incompetent retard (KZ) care to explain.

  2. This can easily be done through the Parliamentary committee. Summon the BOZ governor to answer the questions NOW before 12 May when Parliament is dissolved and things go haywire. Is BOZ governor liable to prosecution if the BOZ breaks the law?

  3. Zambia is heading for tough times ahead. At this rate of Money Supply growth hyperinflation is inevitable and prices of Consumer goods will skyrocket by August 12,2021. Is Price Control coming?

  4. Yes, let’s have the BOZ Governor at Parliament if the law provides for this.

    We have to have answers from our Bank and our Government.

  5. They are Printing Money like confetti so hyperinflation is coming and prices of Consumer goods will skyrocket. BOZ and Ministry of Finance know what is going on but are Powerless to stop the mess.

  6. Clarify what? The boz have given a statement and that is it. If you don’t like it then you can go and cry in your bedroom. This culture of always trying to criticize is getting boring.

  7. Specific questions require specific answers. No need for agitation. What happened to the virtue of transparency by those occupying public offices in our land?

  8. Mr Bwalya has raised legitimate points that needs to be clarified. Firstly a reputable BOZ governor was replaced as he would not be a lap dog of that convict hence he was replaced none other than lungus drinking partner.

    Zambia is broke, the treasury has no money. Two interest payments have been defaulted in the name of COVID, but we have seen by ministers and PF cadres brandishing truck loads of cash, convict donating bicycles and buses. Where has all this money come from

    Till PF is booted out from power, the new government needs to do a forensic investigation on all ministries and close the borders as billions will turn up from lungu and his minions, KZ the monkey included

  9. @Scoucer.U raise crucial points but meantime BOZ and Ministry of Finance are quiet which means they are aware of these Money Printing schemes and the disbursement of the Money to buy votes. This reckless printing of money will lead to hyperinflation and by Election Time Prices of Consumer goods and services will be very high and unaffordable. The writing is on the wall.

  10. Until election day PFake will continue emptying the coffers, and when the coffers are empty BoZ will print more money – increasing inflation. And with Lungu and his cronies like KZombie having absolutely no conscience it will go on until US$ 1 = Kwacha 100. Thanks guys!

  11. Here we are back to square 1. And the PF wants another mandate yet they are creating unnecessary economic melt down.

  12. This press release by Anthony Bwalya is too complex for the average dull PF cadre.You wont see any reasonable comments from them.
    Clearly this explains the high inflation rate prevailing.
    BOZ governor was trying to cheat the public that printing money entails printing physical cash bearing his signature.We now have cadre running the central bank.

  13. Independent take your ugly face away from here. To you anyone who criticizes this government is a turn on to your loose womanhood

  14. But ubupuba Ubu.those *****s displaying money are very poor people,probably upnd funded.we have money which can’t fit a safe,you are worried about *****s showing 100 pin?grow up yama

  15. This man is the least educated BoZ governor ever, the man doesn’t even have a degree. His appointment was nothing but wako ni wako stupidity!

  16. The whole PF government from lungu to his minions are uneducated cadres.

    What qualifications and expertise do they have to be a minister. The drunkard can’t communicate in English hence he sends his kaponyas to do his talking.

  17. Iwe Kainyokolola Zulu, this is complex economics way above you Chelston Laboratory Technician pay grade. It’s better to just shut the f**k up that rave off stinking ignorant sh*t! Uleke kudya mbeba kanamunungu wa kanthu iwe.


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