Zambia to triple petrol supply to ease shortage in capital
Zambia plans to triple petrol supply to 900,000 litres a day using imported stocks in its storage depots after panic buying by motorists led to shortages in the capital, the energy minister said on Wednesday. Christopher Yaluma told parliament that petrol supply to the capital and outlying areas was doubled to about 600,000 litres per day this week but shortages persisted. (Read more)
Kwacha intervention: Bank of Zambia upped the reserve ratio to 14% as of Monday and also released $178m to help combat Kwacha depreciation.
So BoZ went for a combination of indirect and direct intervention to halt the recent Kwacha slide. Spot Kwacha was trading at K6.01 to dollar today after appreciating to as high as K5.92 on Tuesday. The BoZ governor also announced that gross international reserves decreased from January 2014 by 2.8% to $2.673bn at the end of February 2014. We’ll keep an eye on this – see how it plays out.
Weak appetite for GRZ Treasury Bill auction 5 of 2014.
A paltry 110.1m was bid by various players resulting in K110.2m being allocated. The weaker appetite could have been a response from commercial banks to the increase in reserve ratio to 14%. Will we continue to see this weakening of appetite for GRZ securities? We won’t have to wait long to find out! (Auctions are done every 2 weeks).
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *