The Bank of Zambia has announced changes to Government securities auction thresholds for both Treasury Bills and Government Bonds.
The maximum bid amount for the non-competitive window has been adjusted from K29,000.00 to K499,000.00 (face value) per bidder per maturity tenor.
The minimum bid amount for non-competitive bids is unchanged at Kl ,000.00.
The minimum bid amount for competitive bids has also consequently been adjusted from K30,000 to K500,000.00 (face value) per bidder per maturity tenor.
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 revision 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 overtime.
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.
This is according to public notice issued by the Bank of Zambia.