If Si 55 Is Not a Indirect Passage for Forex Controls
CONTENTS
Introduction....................................................................................................................2
Discussion....................................................................................................................3-4
Conclusion.....................................................................................................................5
Reference………………………………………………………………………………………6
INTRODUCTION
The objective of this Essay is to discuss whether the Bank of Zambia monitoring of the Balance of payments regulations is an indirect way of the introduction of foreign exchange controls.
Sunday 5th May, 2013 the Minister of Finance Mr. Alexander Bwalya Chikwanda, MP, signed a Statutory Instrument which will bring into force the Bank of Zambia Regulations of Monitoring of Balance of Payments, 2013, with effect from 16th May, 2013. The main objective of the Statutory Instrument is to monitor Balance of Payments in a transparent and accountable manner.
The Ministry of Finance took that opportunity to affirm that in no way do the regulations stipulated in SI 32 of 2013 constitute any intentions - implied, disguised, concealed or otherwise by any other definition - to introduce exchange controls in Zambia. It is for this reason that the Ministry appeals to members of the public to ensure that instead of denigrating the regulations, the measures should be seen as a significant step towards creating high transparency standards in managing the Zambian financial system. The private sector and all affected stakeholders now have the opportunity to adopt genuinely transparent practices and standards, backed by law through SI 32 of 2013.
The debate concerning whether or not the SI32 is a disguise to bring about exchange controls is to be expected because balance of payments are more easily amenable to exchange control than to any other method of restriction.
Balance of payments according to the Encarta English dictionary
Introduction....................................................................................................................2
Discussion....................................................................................................................3-4
Conclusion.....................................................................................................................5
Reference………………………………………………………………………………………6
INTRODUCTION
The objective of this Essay is to discuss whether the Bank of Zambia monitoring of the Balance of payments regulations is an indirect way of the introduction of foreign exchange controls.
Sunday 5th May, 2013 the Minister of Finance Mr. Alexander Bwalya Chikwanda, MP, signed a Statutory Instrument which will bring into force the Bank of Zambia Regulations of Monitoring of Balance of Payments, 2013, with effect from 16th May, 2013. The main objective of the Statutory Instrument is to monitor Balance of Payments in a transparent and accountable manner.
The Ministry of Finance took that opportunity to affirm that in no way do the regulations stipulated in SI 32 of 2013 constitute any intentions - implied, disguised, concealed or otherwise by any other definition - to introduce exchange controls in Zambia. It is for this reason that the Ministry appeals to members of the public to ensure that instead of denigrating the regulations, the measures should be seen as a significant step towards creating high transparency standards in managing the Zambian financial system. The private sector and all affected stakeholders now have the opportunity to adopt genuinely transparent practices and standards, backed by law through SI 32 of 2013.
The debate concerning whether or not the SI32 is a disguise to bring about exchange controls is to be expected because balance of payments are more easily amenable to exchange control than to any other method of restriction.
Balance of payments according to the Encarta English dictionary
References: 1. Transcript, Government Of Zambia, Statutory Instrument No.32 Of 2013, The Bank Of Zambia Act, Laws Volume 20, Cap.360 2. Released Media Statement, Statutory Instrument No.32 2013, 5th May, 2013. 3. www,alldayforex.com/exchange-control-tarriffs-forex.html 4. Published Article,The Post Newspapers Zambia, By Chiwoyu Sinyangwe, Wednesday 4th November 2009. 5. www.watchdog.com