The financial sector in Zambia has undergone two notable phases of development from the time...
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The financial sector in Zambia has undergone two notable phases of development from the time of Zambias independence in 1964. The first was during the 1970s when the Government nationalization program had an important impact upon the sector. During the first phase, the Zambian economy was dominated by government ownership. The financial sector was riddled with controls implemented through direct control over credit and interest rates. There were also substantial administrative controls in place directing lending and controlling both local and international financial transactions. The exchange rate was fixed, and trade was heavily regulated. The second phase of notable change in the financial sector in Zambia has been the liberalization of the sector and the economy generally since 1991 to date. During the second phase, a programme of overall economic reform was fully embarked upon and financial reforms were amongst the key issues addressed. Discuss the implementation of the financial sector reforms that were embarked during the second phase and analyze their implication on the achievement and maintaining the price stability and promote financial system stability in the Republic of Zambia.
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