Africa Financial Sector Responses to COVID-19 - Zambia

Jul 28, 2020

This page presents measures and initiatives by the Zambian government, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.

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Instrument

Institution

Financing volume

Description

Monetary Policy

The Bank of Zambia

N/A

(May 20, 2020) To mitigate the negative impact of COVID-19 on the stability of the financial sector, the Bank of Zambia decided to lower the policy rate by 225 basis points to 9.25%.

Regulatory and Monetary Policy measures

The Bank of Zambia

N/A

(April 03, 2020) The Central Bank of Zambia has put in place a set of measures to safeguard the stability of the financial system and promote greater use of digital financial services. These measures include, inter alia 
* A medium-term refinancing instrument, valid for a period of 3 to 5 years, with a fund of 10 billion Kwacha (USD 549 million).  The facility covers the agriculture, tourism and energy sectors as well as other targets such as households. Financial service providers will be able to access the facility at a rate of 12.5%;
* Open market operations to provide short-term liquidity to banks;
* Revision of the governance rules of the interbank foreign exchange market to reduce the volatility of the domestic currency.

 


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