Zambia central bank raises reserve ratio to fight kwacha fall
LUSAKA, Feb 2 (Reuters) -Zambia's central bank will raise the minimum amount of local and foreign currency deposits commercial banks must keep with it from next week in an effort to curb the depreciation of the local kwacha currency ZMW=, the bank said on Friday.
The minimum statutory reserve ratio on both local and foreign currency deposits, including government deposits and vostro account deposits will from Monday be increased to 26% from 17%, the central bank said in a notice.
"The increase in the statutory reserve ratio is necessitated by persistently high demand pressures in the foreign exchange market, which are contributing to inflation," it said.
The bank already raised the statutory reserve ratio twice in November last year, giving similar reasons.
Reporting by Chris Mfula; Editing by Nellie Peyton and Angus MacSwn
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