Foreign currency reserves in Africa’s copper producer Zambia have deteriorated to $1.63bn (from 1.83bn 30 Jun.). This was contained in a monetary policy committee statement released in Lusaka on 21 Nov.
“Gross international reserves declined to $1.63bn as at end of September 2018 representing 1.9-months import cover, from $1.82bn (2.2 -months of import cover) at the end of June 2018. This was attributed to debt service payments. To build international reserves, the Bank of Zambia continued to purchase foreign exchange directly from the market and through the mineral royalty tax receipts. Cumulative, the purchases amounted to $345mn in the year to September, 2018,” Kalyalya said in the note.
Earlier last week the Honorable Minister of Finance reported in her stakeholders brief for fiscal performance that reserves were at $1.73bn as at end of August. Contained in the statement was the YTD external debt service of $545mn.