Finance Minister Sets Record Straight on Currency Controls, Cheques

Minister of Finance Dr Situmbeko Musokotwane has set the record straight on recent reports and rumours regarding proposed foreign currency regulations and a ban on cheques.

According to the minister proposals on the draft foreign currency regulations do not mean a return of foreign exchange controls, which he said government has no intention of reintroducing following their abolition in 1993.

In a statement delivered before Parliament on Thursday Dr Musokotwane explained that the matter, along with that on a proposed phasing out of cheques as a mode of payment for transactions are subject to stakeholder consultations, with consultations taking place through the Public Private Dialogue Forum (PPDF). He noted that the use of cheques in recent years has declined significantly and that the proposal to phase out cheques is one of the key initiatives being pursued under the National Payment System Vision and Strategy 2023-2027.

“I reiterate that the Bank of Zambia has commenced stakeholder consultations to allow for wider discussion and feedback. This will help in creating the necessary awareness on the intention of this regulation and to ensure that these regulations work for all,” he stated.

The minister confirmed that a further statement on the matters would be issued once the consultations have concluded. He reiterated that draft proposals were aimed at enhancing financial sector stability and promoting the efficiency of transactions.