Bank of Zambia (BoZ) - Lusaka - Zambia

The Bank of Zambia (BoZ) is the central bank of Zambia and operates as a public institution under the authority of the Zambian government. Established in 1965, the primary mandate of the BoZ is to formulate and implement monetary policy, manage the country’s currency, and ensure financial stability. The bank plays a critical role in maintaining price stability, regulating the banking sector, and overseeing the financial system to foster economic growth and development in Zambia.

One of the key functions of the Bank of Zambia is to manage monetary policy. This involves using various tools, such as interest rate adjustments and open market operations, to control inflation and stabilize the national currency, the Zambian kwacha. By influencing the money supply and interest rates, the BoZ aims to create a conducive environment for investment and economic activity. The bank also holds and manages Zambia’s foreign exchange reserves, which are essential for stabilizing the currency and supporting international trade.

In addition to its monetary policy role, the Bank of Zambia serves as the regulator and supervisor of the financial sector. It oversees commercial banks, microfinance institutions, and other financial entities to ensure their compliance with regulatory standards and safe operational practices. This regulatory function is crucial in maintaining public confidence in the financial system and protecting depositors’ interests.

The BoZ also plays a vital role in maintaining and developing the country’s payment systems. This includes modernizing payment infrastructure to facilitate efficient and secure transactions, which is essential for supporting economic activities. The bank is actively involved in promoting financial inclusion initiatives, ensuring that underserved populations have access to essential banking services.