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Alba Iulia
Friday, October 15, 2021

Bank of Zambia says it is aware of reports of cash shortages and is investigating

Economy Bank of Zambia says it is aware of reports of cash shortages...

The Bank of Zambia (BOZ) says it is aware of reports of cash shortages and has instituted a thorough analysis and investigation at some of the banks and areas where there is a higher demand for cash in order to ascertain where the huge demand for cash is coming from.

In response to an inquiry, BOZ Deputy Governor-Operations Dr. Francis Chipimo said there has been a big increase in demand for cash from the financial sector since the beginning of the year, which increased further in August.

Speaking at the Monetary Policy Committee Announcement and Press Briefing, Dr. Chipimo said the central bank has been providing banks with more cash in order to deal with the issue and has always emphasized on the fact that banks need to manage cash better.

He said the Bank of Zambia does not impose limits on what banks can give to their clients but always tries to understand why large withdrawals of cash are made when the central bank has been trying to promote the use of all other means of digital financial services, transfers and mobile money.

He stated that the Bank of Zambia had received complaints that some banks have run out of cash.

In further response to the ZBT question, BOZ Governor Christopher Mvunga noted that the country is now going through the crop-purchasing season and some farmers are in areas where banking facilities are not available therefore, as cash is dispatched to farmers for purchases it takes longer to come back into the banking system.

Mvunga said the bank has not limited note circulation or implemented any limits and does not intend to do so adding that the temporal situation is being addressed and is confident that the issue would be sorted out by Friday.

On the question of why only lower denomination notes were available which has resulted in inefficiencies and higher ATM fees for customers?, BOZ Assistant Director in the Banking and Currency Department Raphael Phiri said the central bank has consistently tried to ensure that there is a balanced denominational mix within the economy.

He noted that there is no shortage of K50 or restrictive K100 bank notes but the bank tries to ensure that there is a denominational mixed balance in the economy.
He said the central bank works with all the banks to ensure that sometimes they are able to use the market itself to move money from banks sitting with excess balances to other banks as opposed to going to the central bank.

Phiri mentioned that the central bank supplies most banks with money on a daily basis in order to be able to meet the demand in the economy.

11 COMMENTS

  1. Mr President make changes at Bank of Zambia as this is where monetary deals
    Start as you can hear from kambwilis clip.
    The longer you delay the more damage will
    Be done.

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  2. Thieves are panicking. They don’t want their loot to be taken away knowing they can’t explain how they made so much money. Change the currency and fix those stashing cash under the mattresses.

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  3. Speculators buying up kwacha…….

    The announcement by HEHH about the state of Zambias coffers has dampened demand already………..

    That is one way of manipulating currency , and what better way than telling the truth….

    I think 15/1 is a fair place to be…

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  4. When are the PF thieves being caged??? Coz now they trying to make themselves useful and hide the stolen loot. Was a deal cut with these PF thieves??

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  5. Bar of Zambia is panicking, the cash given to PF campaign teams start to show….
    Ifyakulya ubushiku fitulikila ku malushi. Kambwili is just another vomit from Chris.

  6. Permanent Secretaries should not be let loose. Let them stay put in their offices and give us record of their cash flow. Investigate their wealth, houses plots, farms etc. Bank accounts. Some if not all were clearly organising cadres with lots of money from their offices. These are well known by secretaries drivers and other Ministries staff. Some even put drivers, sweepers, officers in trouble for asking them to sign huge sums for their selfish gain. The worst was at Ministry of Education where one PS had everyone wanting fired and yet he just wanted to cover himself over stealing. He even got a cool K700,000 for a trip that never happened. All was pushed under the carpet by the state machinery. We need our money back. We have suffered enough!!!!!

  7. We have a currency crisis because some traders are hoarding the ZMW money. Busy storing up, anticipating a gain in the Kwacha when the assumed bubble pops, bursts, to see the USD sky rocket again.

  8. Why is BoZ investigating the obvious? Money is in mattresses. We are told junior PF cadres were carrying boot loads K100 notes in their cars. What more the PF seniors? They must have had truckloads. If kambwili alone can demand for $30 million (482,379,900) from BoZ, how much more are PF president, his vice, ministers, MPs, political candidates, campaign managers and other minions holding? Do your job BoZ without wasting time. The longer you wait, the more likely this cash will be laundered into assets and hard currency. Please Keep an eye on cash deposits from petrol stations, large family owned retailers and wholesalers too.

  9. flag Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Honeybee

    There are videos doing the rounds on social media showing cadres hording cahs and bank notes in bedrooms; sacks; mattresses and even burning some. Not sure how authentic these videos are but could that be the cause of shortage?
    Our police and media are too lazy to investigate..

Comments are closed.

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