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BoZ revises treasury bills, bonds auction thresholds

THE Bank of Zambia has revised auction thresholds for government treasury bills and bonds, effective September 13, 2021.

The thresholds were last revised in 2001 by the MMD government.

The maximum bid amount for the non-competitive window has been adjusted from K29,000.00 to K499,000.00 face valued per bidder per maturity tenor.

The minimum bid amount for competitive bids has also been adjusted from K30,000.00 to K500,000.00 face value per bidder per maturity tenor.

According to a statement from Bank of Zambia assistant director of communications Besnat Mwanza, the thresholds have been revised to “realign them with economic changes and passage of time since they were instituted”.

“The factors that have been taken into account to advise this decision include the impact of inflation over the last twenty years since they were revised. This revision also realigns the thresholds to the changes in the auction sizes that have taken place over time,” said Mwanza yesterday. “Further, in line with the government’s objective of enhancing financial inclusion, the Bank believes that the revision will encourage wider participation of smaller retail investors who may prefer to participate in the non-competitive window as price takers with relatively higher amounts of up to K499,000.00. The changes will take effect from 13th September, 2021. All investors are advised accordingly.”

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