(3 minutes read)
· The Bank of Zambia (BoZ) said that the Gross International Reserves rose to US$1.4 billion equivalent to 2.6 months of import cover at the end of June
· It was US$1.2 billion at the end of March
· He also projected inflation to decelerate faster than was earlier anticipated although it would remain above 6 to 8-percent from the current average of 22 point 6-percent
The Bank of Zambia (BoZ) said that the Gross International Reserves rose to US$1.4 billion equivalent to 2.6 months of import cover at the end of June. It was US$1.2 billion at the end of March.
The reserves rose to US$ 2.9 billion equivalent to 5.4 months import cover after the receipt of the US$ 1.3 billion dollar IMF Special Drawing Rights.
Demand for government bonds surged. The subscription rate rose to 162.2 percent from 66.3-percent in the first quarter. This was due to improved investor sentiments following the credit rating upgrading by Fitch in April, particularly among non residents who accounted for buying about 70-percent of bonds. BoZ Monetary Policy Committee has maintained the Monetary Policy Rate at 8.5 percent, according to BoZ Governor Christopher Mvunga. The decision was arrived at because of a favorable exchange rate and improved prospects for fiscal consolidation.
He also projected inflation to decelerate faster than was earlier anticipated although it would remain above 6 to 8-percent from the current average of 22 point 6-percent.
Mr Mvunga said that the depreciation rate of the Kwacha against the US dollar reduced further to 3.6 percent to an average rate of K22.41 in the second quarter compared to 4.4 percent in the first quarter following an improvement in the supply of foreign exchange, mostly from foreign portfolio investors and mining companies.
