Zambia c.bnk imposes new rules to defend kwacha

The central Bank of Zambia on Feb. 5, 2001, imposed new rules to defend the battered kwacha, which it says is a victim of speculators and unscrupulous businessmen. In a statement, the bank said it had reduced overall foreign exchange exposure limits for commercial banks to 15 percent of regulatory capital from 25 percent at present. It also ordered banks to maintain all documents on foreign exchange exposure.

After the announcement, the kwacha was trading in the range of 3,600 to 3,700 against