Exchange controls: Monitoring of Balance of Payments Regulations



In exercise of the powers contained in section fifty-seven of the Bank of Zambia Act [Laws, Volume 20, Cap. 360], the Minister of Finance Mr. Alexander Bwalya Chikwanda, MP, has signed a Statutory Instrument which will bring into force the Bank of Zambia (Monitoring of Balance of Payments) Regulations, 2013, with effect from 16th May, 2013. The main objective of the Statutory Instrument is to monitor Balance of Payments in a transparent and accountable manner.

In view of the foregoing, the Ministry of Finance takes this opportunity to affirm that in no way do the regulations stipulated in SI 32 of 2013 constitute any intentions – implied, disguised, concealed or otherwise by any other definition – to introduce exchange controls in Zambia. It is for this reason that the Ministry appeals to members of the public to ensure that instead of denigrating the regulations, the measures should be seen as a significant step towards creating high transparency standards in managing the Zambian financial system. The private sector and all affected stakeholders now have the opportunity to adopt genuinely transparent practices and standards, backed by law through SI 32 of 2013.



  • comment-avatar
    Ex - Exchange Controller 4 years

    Good work Ministry of Finance.The naivety of us Zambians can be mind boggling at times!! Do you all realize that we are one of the most few countries (that’s if there is any the world!!)that have an “open door policy” to access to Forex even for foreigners.Having worked in Exchange Control depts of BoZ and another Central Bank abroad (combined total 20 years),trust me,this is not Exchange Control but Exchange Monitoring which countries like the UK,RSA.South Korea,Malaysia,Taiwan,China including the USA have in place. In any way the introduction of exchange controls requires the Legislature to put in place an Exchange Control Act. What BoZ has simply done was to propose the amendment (Amendment Bill Number 1 of 2013)and strengthening of Bill of 40A to close the many loop holes contained therin e.g. 1.Foreign exchange inflows and outflows 2.Imports and export of goods and other inflows and outflows currently not monitored and unchecked because of the repeal of the Exchange Control Act during the introduction of Liberalization of Trade and Money Markets.These are but a few examples of the ongoing abuse forex by both the FDIs,Zambian and foreign Cross border Traders,international and local tour operaters last but not least,the Chinese wholesalers and retail traders who are now termed FDIs,.FDIs?? my foot!!

    So,we Zambians,let’s be-careful for what we wish for,at least let’s try to understand the complexes within that particular matter before we dive in. I rest my case.

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    Froth 4 years

    Too many Statutory Instruments without feedback from trade associations and professional bodies can result in unintended negative consequences.

    An empty vessel makes more noise and the one that has nothing tangible rules by meetings, directives and controls.

    While the world is moving forward, we have moved to 70s

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    tumba 4 years

    Too bad for smugglers who declare fake invoices to cheat zra.

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    Temba 4 years

    …Its a good peace of instrument! Congrats…

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    I forsee alot of shortages og goods per zed as restrictions of this kind only brings about negativity in the market and see.

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    Free 4 years

    From what I can see, you have not read SI No.32 of 2013. PLEASE, read SI first and comment later.
    Hon. Sampa, as per current Government “procedure” its at least guilty to be “economical with the truth” or at worst, absolute liar.
    As a mater of FACT, SI No. 32 is not aimed solely at mines (and they can afford such idiotically drafted procedure) but the same Regulations do put substantial extra financial burden on SME and in the process open new lucrative source of income for the Banks (pure coincidence that Hon. Sampa has been skinning importers and SME investors for, as per his own admission, 13 years).

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    zedian 4 years

    this SI will just create problems in Zambia as it did in the KK days!!!!

  • comment-avatar
    Posapo 4 years

    Excellent SI,Minister job well done.
    Monitoring at its best and not exchange control

  • comment-avatar
    Sam 4 years

    Good SI

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    hoover 4 years

    This will mean that Zra can get data from bank of Zambia and see how much was remitted and if you undervalue wen paying duty ,Zra will get u.

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    Charity Katanga 4 years

    This is a Good Law. Should have come earlier. You can’t send out money from SA without approval of the Reserve Bank.

    Those against it don’t know what they are talking about.

    It is in Zambia that one can come anytime you can access forex from every corner of town unchecked and you leave the country.

    Those in genuine business and uphold proper business ettiquete have nothing to fear.

    Good law indeed. Am happy. Amen Amen Amen

    • comment-avatar
      Fenwick 4 years

      But we came from here ba wishi and if you were there then you saw what it did to our country-scarcity of forex. Zambia couldn’t even import Coca Cola concentrates. We resorted to the inferior Tip Top.

    • comment-avatar

      Seriously, we have to be clear in our reasoning when comparing ourselves to South Africa. South Africa is a big export oriented economy, we are not. Instead, we are a big import oriented economy. And this is what we did not realise during KK’s foreign exchange control times. What is still not known is the criteria that will be used to permit or not to permit individual citizens to import any commodity. Just asking.

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    true 4 years


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    Me 4 years

    This IS Exchange Control!!

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    Zambian 4 years

    We hope the same monitoring applies to the money’s spent by these ministers

    We need transparency all accross, then only true development will come into existence

  • comment-avatar
    hoover 4 years

    why only sign after sampa,s letter to P.S is in press? Was it the minister who was sitting on S.i?