By BUUMBA CHIMBULUHIKING securities bidding thresholds by the Bank of Zambia (BoZ) could be an attempt to curate the overcrowding effect of commercial banks in the money markets.The minimum amount for competitive bids has been scaled to K500, 000 (face value) from K30, 000 per bigger per maturity tenor while the maximum bid amount for the non-competitive window has been adjusted to K499, 000 (face value) from K29, 000 per bidder per maturity tenor.This could force commercial banks to lend to corporate credit and retail markets, according to the Economics Association of Zambia (EAZ) national secretary, Mr Mutisunge Zulu.“On the face of it, the Bank of Zambia could be attempting to curate the overcrowding effect of commercial banks in the money markets but ebbing yields below inflation thereby forcing them to lend to corporate credit and retail markets, investments by retail units will be adversely impacted,” Mr Zulu said.According to the Mr Zulu, hiking the […]
BOZ HIKED BIDDING THRESHOLD IS ATTEMPT TO CURATE OVERCROWDING – EAZ
