• BoZ does not restrict quantity of Forex clients can buy from their banks.
• Commercial banks are designated as authorized dealers through the IFEM.
• BoZ is not pursuing any regulations to restrict the flow of Forex.

The Bank of Zambia (BoZ) has dispelled media reports that it is implementing foreign exchange controls which restrict the amount of Forex a customer may buy from their bank and consequently leading to fuel shortages.
In a statement made available to Money FM News, the Bank’s Communication Division said the Central Bank does not restrict the quantity of foreign exchange clients can obtain from their banks.
It stated that under the current foreign exchange market arrangements, commercial banks are designated as authorized dealers through the interbank Foreign Exchange Market (IFEM) system, adding that Bureau de Change are also allowed to deal in retail cash transactions with customers.
The Communication Division further said it is not true that the bank is pursuing any regulations intended to restrict the flow of foreign exchange in the country, but that the Bank has continued to support the Forex market during the current period when supply has been constrained due to the economic challenges being faced by the country’s economy and the global economy, especially in the wake of the Covid-19 Pandemic.
It explained that under the Foreign Exchange Market, the role of the Central Bank is to intervene by buying or selling foreign exchange in order to support the market in events of adverse exchange rate movements, which typically arise with material mismatches in demand and supply.
“This is achieved by BoZ directly transacting with local commercial banks, who have all been designated as Authorized dealers. On a daily basis, the BoZ monitors foreign exchange market pressure points and constantly liaises with commercial banks in order to moderate exchange rate volatility. In turn, commercial banks deal directly with their respective clients in order to satisfy their foreign exchange requirements,” the Bank said.
It however stated that there is a limit of US$5, 000 for over the counter daily cash withdrawals at commercial banks and a limit of US$1,000 cash transaction amount per customer at Bureau de Change.
“These limits are primarily for monitoring purposes meant to enhance the know-your-customer protocols within the financial system and are consistent with the international protocols relating to internationally agreed regulations aimed at countering money laundering and the financing of terrorism,” it added.