Central bank says financial market may become unsettled

BANK of ZAMBIA

 

STATEMENT BY GOVERNOR MICHAEL GONDWE

October 29, 2014

The Bank of Zambia in communion with the nation mourns the tragic loss of our beloved President, His Excellency Michael Chilufya Sata. At a time like this it is expected that financial markets may become unsettled leading investors and individuals to take measures that reflect market uncertainty rather than any change in the fundamental strength and resilience of our economy. We have indeed seen some of these uncertainties reflected in the foreign exchange market.

I wish, however, to assure the nation that the financial sector and the Zambian economy remain fundamentally strong and resilient. This resilience has been demonstrated this year through the challenges faced in the foreign exchange market over the first half of the year, the measures taken to address these challenges, and the relative stability we have seen over the third and fourth quarters of the year. Furthermore, our financial sector remains well capitalised and sound.

Consistent with our policy of operating a flexible exchange rate whilst minimizing volatility, the Bank of Zambia stands ready to provide support to the market as required during these difficult times. Further, we believe that the fundamental drivers of the economy remain in place and that the prospects for 2015 and beyond continue to be bright. In this regard, we remain resolute in ensuring that we maintain macroeconomic stability that supports the continued growth and diversification of our economy.

On behalf of the Bank of Zambia Board, Management and staff, and indeed on my own behalf, I wish to convey our deepest condolences to the First Family and join them in prayer during this difficult time.

Issued by:

 

Head – Communications Division

Bank of Zambia

LUSAKA

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