• The maximum bid amount for non-competitive window has been adjusted from K29, 000 to K499, 000.
• Minimum offer amount for non-competitive bids is unchanged at K1, 000.
• The changes will take effect form 13th September, 2021.

Bank of Zambia (BoZ) has revised the Government securities auction thresholds for both Treasury Bills and Government Bonds to realign them with economic changes and passage of time since they were instituted.
Bank Assistant Director-Communications Besnat Mwanza disclosed to Money FM News in a statement that the maximum bid amount for non-competitive window has been adjusted from K29, 000 to K499, 000 on face value per bidder per maturity tenor, while the minimum offer amount for non-competitive bids is remains unchanged at K1, 000.
Ms. Mwanza added that the minimum bid amount for competitive bids has also been adjusted from K30, 000 to K500, 000 on face value per bidder per maturity tenor.
“The thresholds have been revised to realign them with economic changes and passage of time since they were instituted. The factors that have been taken into account to advise the revision include the impact of inflation over the last 20 years since they were revised. This revision also realigns the thresholds to the changes in the auction sizes that have taken place overtime,” Ms. Mwanza said.
Ms. Mwanza stated that in line with government’s objective of enhancing financial inclusion, the Central Bank believes that the revision will encourage wider participation of smaller retail investors who may prefer to participate in the non-competitive window as price takers with relatively higher amounts of up to K449, 000.
“The changes will take effect form 13th September, 2021. All investors are advised accordingly,” she added.
Government securities are debt instruments issued by Government through the Bank of Zambia in the form of Treasury bills and Government bonds. By issuing these instruments, the Government is borrowing money from the buyers of the debt instruments.
Government is obliged to pay the holder of the Treasury bill or Government bond a fixed sum of money on the maturity date of the instrument. Therefore, when one buys Government securities, he or she is lending money to the Zambian Government.