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Zambia’s central bank will increase the daily limit on currency exchange transactions, it said Thursday, as part of an effort to attract transactions through official channels and reduce complications for businesses.

Commercial bank customers will be allowed to trade $ 10,000 per day, compared to $ 5,000. Customers of retail exchange bureaus will be allowed to exchange up to $ 5,000, raised from $ 1,000, Central Bank Governor Christopher Mvunga said.

“This will allow for a regulated and systematic market where people can transact through formal channels,” Mvunga said of the measures, which will go into effect on June 1.

The limits were introduced 20 years ago and the central bank recognized that they hampered businesses and forced people to buy hard currency on the black market.

The central bank said in a circular dated May 24 that it would abide by the new over-the-counter exchange limits for a two-month period, subject to further scrutiny.

(Report by Chris Mfula edited by Promit Mukherjee and Peter Graff)

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