BoZ sets $10,000 threshold for importing, exporting goods

Government has reiterated that the soon to be implemented Statutory Instrument(SI) number 32 of 2003 is not aimed at reintroducing exchange controls but at providing transparency and securing benefits for the economy.

And the Bank of Zambia (BoZ) has set a threshold of $10,000 (about KR52, 000) of goods for importers and exporters.

BoZ Balance of Payment (BoP) Team Leader, Wilson Mazimba stated that the statutory instrument will allow the country to effectively monitor money flows from imports and exports.

Mr. Mazimba said people must not be worried about the new instrument because it has a lot of economic benefits which include increased revenue and foreign exchange liquidity.

He also said the new law will give proper and credible statistics on balance of payments in the country.

He said the SI will further accord businesses that were operating outside the financial system an opportunity to come on board thereby enhancing financial inclusion.

Mr. Mazimba said this in Lusaka today when he presented a paper on the SI at a media breakfast that was organised by the First National Bank (FNB).

"Exporters will be allowed to avail us with monthly reports to allow us know and plan for the inflows and outflows," he said.

Mr. Mazimba further said the SI will safeguard the export and import remittances in a bid to reduce the risk of money laundering.

At the end of April this year, Minister of Finance Alexander Chikwanda signed a statutory instrument that brought into force the Bank of Zambia monitoring of balance of payments regulations 2013, aimed at monitoring the BoP in a transparent and accountable manner.

Government then rescheduled the implementation of the SI from Thursday 16^th May 2013 to Monday 1^st July 2013 as contained in SI number 35 of 2013.

Mr. Chikwanda said the rescheduling of the SI implementation date was meant to give room to finance service providers and other relevant stakeholders to establish systems for adhering with the provisions of the instrument.

Meanwhile, the Bank of Zambia has set a $10,000 (KR52, 000) threshold for exports and imports in the country.

Mr. Mazimba stated that businesses were therefore allowed to export goods and services greater than or equivalent to the said amount in any other foreign currency.

He further explained that payments of more than the threshold but less than $100,000 will need to be remitted electronically while amounts more than $100,000 will be paid by way of irrevocable letters of credit.