Vice President Inonge Wina is confident that the foreign reserves at the Bank of Zambia (BoZ) will increase following several measures put in place by the Ministry of Finance.
Speaking during the Vice President’s 45 Minutes Question Time in parliament this morning, the Vice President said government started boosting foreign reserves through payment of mineral royalty in US dollars and holding reserves in gold.
She said the central bank is exploring possibilities of broadening asset universe by including gold to the reserve portfolio.
Mrs. Wina emphasized that many countries across the world are following this trend.
The Vice President also disclosed that government has been receiving Mineral Royalty Tax in US dollars.
She said a total of US$254 million has been added to the reserves through this stream.
“Mr. Speaker, the Bank of Zambia will participate in the foreign exchange market to purchase foreign exchange in order to rebuild our reserves. The Ministry of Finance has also gone into reorganization of debt service and this means that we are reducing debt service and related payments over the medium term period by negotiating on terms of loans and cancelling loans that have not drawn down,” she told parliament.
The Vice President said it is for this reason that she is confident that the levels of reserves at the central bank will increase following several interventions from the government through the Ministry of Finance.