Maravi

Liquidity flows will remain strong - BoZ

Liquidity flows will remain strong - BoZ
By Kabanda Chulu
Friday August 22, 2008 [04:00]

THE Bank of Zambia (BoZ) has urged the public not to panic because liquidity flows in the financial markets will remain strong despite the death of President Levy Mwanawasa. Giving an update on the situation in the market yesterday, BoZ deputy governor for operations Dr Denny Kalyalya said uncertainty and nervousness gripped the financial markets when it was announced that President Mwanawasa had died.

"To reflect this, the kwacha recorded a depreciation of 1.8 per cent on this day and a further 4.1 per cent on 20 August 2008, to close the day at K3, 596.85 and K3,616.85 per US Dollar on the buying and selling sides, respectively," Dr Kalyalya said. "Although the exchange rate of the kwacha against the US Dollar moved in this manner, the underlying liquidity flows in the market remained very stable and this is indicative of the fact that the fundamentals (notably demand and supply factors) remained unchanged."

He said the Bank of Zambia was ready to provide liquidity support as deemed necessary.

"It is also important to reiterate that the Bank's monetary policy will remain focused on containing inflation and contributing towards broad-based macroeconomic stability.

As such, we will continue to monitor both the domestic and foreign exchange markets and take appropriate steps to stabilise the markets," said Dr Kalyalya. "So it is exceedingly important that all stakeholders remain calm and act constructively to ensure that macroeconomic stability is maintained as this is essential for economic growth and development."

Labels: BOZ, DENNY KALYALYA, LIQUIDITY, MAGANDE

posted by MrK @ 5:01 AM