• The trajectory that the Central Bank has taken is restricting liquidity on the market.
• They have continued to siphon money from the economy to go towards Treasury Bills and Bonds.
• This is creating a huge negative impact on the country’s capacity to drive economic recovery.

A Financial Analyst has urged Bank of Zambia (BoZ), to put in place modalities that will increase liquidity in the economy, for purposes of heightening productivity to accelerate Gross Domestic Product (GDP) growth.

Speaking in an interview with Money FM News, Trevor Hambayi said the trajectory that the Central Bank has taken is restricting liquidity on the market, and they have continued to siphon money from the economy to go towards Treasury Bills and Bonds as well as statutory reserves for the financial institutions.

Mr. Hambayi noted that this is creating a huge negative impact on the country’s capacity to drive economic recovery, hence the need to increase liquidity on the market for purposes of investment by the private sector.

“The key aspect that is going to be cardinal in the country being able to achieve economic recovery is obviously an issue of the liquidity. Right now the trajectory that the Central Bank has taken has still been one way that they are restricting liquidity on the market. This is creating a very big negative impact on our capacity to be able to recover the country in driving economic recovery.”

“I would urge the Central Bank to figure out the modalities that are required to be put in place to increase liquidity, for purposes of increasing productivity,” Mr. Hambayi stated.

He added that increasing money supply will help the country to deal with challenges such as employment creation and growth in the Gross Domestic Product (GDP).

“This is what deals with the challenges the country is facing that include employment creation, growth in the GDP to be able to deal with the high cost of living, as well as reducing the high levels of poverty that we are facing,” he added.