Zambia central bank says new law will not stop it from printing money

LUSAKA (Xinhua) – Zambia’s central bank yesterday dispelled reports that a proposed new constitution for the country will strip it of the powers to print money and supervise the financial sector.

The Bank of Zambia (BoZ) said it was aware of numerous reports suggesting that the proposed Constitution of Zambia currently being debated in parliament seeks to take away some of the bank’s powers.

The reports claim the power to print money and supervise the financial sector will now be taken to the central government.

The central bank said the reports were not true because there was no provision in the proposed constitution to strip it of the mandate to print currency and supervise the financial sector.

“The Bank of Zambia will continue to supervise the financial sector as well as print and issue currency of the Republic of Zambia through enabling provisions in the Bank of Zambia Act,” the bank said in a statement.

The central bank however stated that it has made submissions to the government that the bank’s primary function should be to formulate and implement monetary policy.