Zambia’s Finance Minister Proposes Key Reforms to Strengthen Financial Stability
In a recent address to the National Assembly, Dr. Situmbeko Musokotwane, Minister of Finance and National Planning, outlined proposed measures by the Bank of Zambia aimed at reforming the financial landscape.
These proposals include potentially prohibiting foreign currencies in local transactions and gradually phasing out cheques. Dr. Musokotwane emphasized that these initiatives are currently in the consultation phase, inviting stakeholder feedback through the Public Private Dialogue Forum.
The Minister highlighted several key objectives of the draft regulations, including strengthening monetary policy effectiveness and enhancing financial sector stability.
“The use of foreign currencies for local transactions can undermine financial stability, especially during currency fluctuations,” Dr. Musokotwane stated. “Our goal is to align transactions more closely with the Zambian Kwacha, thereby bolstering our monetary policy framework.”
Regarding cheques, the Minister clarified that while discussions are ongoing, no official decision has been made.
“The decline in cheque usage over the past decade necessitates a review of their role in our payment system,” he remarked. “Any potential phase-out will be implemented gradually over at least eighteen months to ensure a smooth transition.”
