The Association of Bureaux De Change of Zambia (ABCZ) says the upward adjustment of the daily limit for over the counter cash transactions from the erstwhile US$1,000 to the current US$5,000 has improved efficiency in forex trading market in Zambia.
ABCZ president Paul Kalumba said while numbers may not have changed significantly in the market, the efficiency of trading has greatly improved. He told the Zambian Business Times – ZBT that the move has also helped increase the supply of US dollars in the formal system.
“That was a good decision by the Bank of Zambia – BOZ, though numbers might not have changed much on the market, but efficiency of trading has greatly improved.
“What this actually tells you is that previously, people must have been trading off the market to meet that number. Because what happens is if you went to the bureau, you have 5,000 to sell to the bureau, and the bureau says no, then you go and sell to the black market. For example in Kasumbalesa there, that’s what would happen,” he said.
Kalumba said, “Now people are able to go into bureaus and be able to transact. It has also helped increase the dollars in the formal system because all those people who used to sell to the black market say in Kasumbalesa there; they are now coming to the bureaus”.
He noted that US$1,000 about 20 years ago was a lot of money, but now, no one travels with such an amount to do business hence the move to revise upwards to US$5,000 for over the counter transactions was a very good initiative.
Bank of Zambia (BoZ) adjusted upwards the daily limit for over the counter cash transactions for customers from the US$1,000 to US$5,000 to allow customers to sell or buy forex over the counter up to a maximum limit of US$5,000 to facilitate growing business needs and volumes.
The Central Bank also adjusted upwards the daily limit for over-the-counter cash transactions for commercial bank account holders from US$5,000 to US$10,000 to allow customers to sell or buy forex over the counter up to maximum of US$10,000.
