us adjust the currency in circulation, a key component of reserve money, which is the intermediate target in our monetary policy operations. we are therefore looking forward to the implementation of the agreement we are signing today to facilitate currency repatriation between our two central banks. i am therefore, very pleased that the long months of discussions between the banco de mozambique and the bank of zambia have resulted in the mutual agreement to repatriate both the meticais and kwacha. this achievement should be saluted as citizens of both countries will now be able to pay for goods originating from the other country with the currency of that country, hence eliminating the need for currency conversions by citizens. distinguished ladies and gentlemen, this agreement is also a step towards further strengthening trade and financial cooperation between the two countries. it provides the legal basis for commercial banks, bureaux de change and other financial institutions to freely accept each country ’ s currency and repatriate it through the banking system with full accountability. the agreement will not only enhance trade cooperation but will also increase cooperation between our two central banks. furthermore, the agreement provides a platform for sharing information on the bank notes in use by the two central banks. this information exchange initiative should not only end at central banks, but be extended to all economic entities that will use and benefit from this development, especially our hard working farmers who should be paid genuine currencies when they sell their produce. once again, governor, let me thank you most sincerely for initiating this agreement. indeed, the signing of this agreement is a testament of the cordial relationship that has existed between mozambique and zambia since the days of the liberation struggle. i must add here that, for us, it marks a key milestone towards enhancing regional integration and macroeconomic convergence. as you are aware, governor, this is our main goal as member countries of the southern africa development community. i thank you.

invited to occasions such as the one we are witnessing today, because it gives us an opportunity to share with you and the public some of the key developments that are taking place in our financial sector and the economy at large. in this regard allow me to say something about what is currently the most topical issue not only in the financial sector but in the national economy as a whole. this is statutory instrument 32 now revised and re - named si 55 on the monitoring of balance of payments. ladies and gentlemen, as the name of the si suggests, the aim is to “ monitor ” and not to “ control ”. there has been much public debate on this subject matter which seems to suggest a public misunderstanding of the intentions of the si. some quarters have gone so far as to link the issuance of si 55 to the earlier issued si33 as amended through si78 ( currency regulations ) and concluded that government is introducing exchange controls. bis central bankers ’ speeches managing director, distinguished invited guests, ladies and gentlemen, allow me to clarify that si33 was issued with the primary intention of reinforcing the use of kwacha, which legal tender, for all domestic transactions. this is in line with practice in most countries around the world. the si has is no way intended to stifle business. the initial monitoring of balance of payments regulations were initially issued under si 32. when the government issued si 32, bank of zambia embarked on an exercise to seek the views of the financial system players, the business community and the public at large. arising from these stakeholder engagements, it became clear that some of the provisions of si 32 would impede the smooth flow of business. it was also evident that the timeframe within which stakeholders were supposed to prepare for the implementation of the si was not adequate. the bank of zambia therefore compiled all the stakeholder inputs and comments and submitted proposed amendments to government. managing director, i am glad to report that government responded favorably to the submissions made and have today re - issued the regulations as si 55, incorporating the majority of the proposed amendments. as you may be well aware, government extended the date of implementation of the si to 1st july 2013 from the initial 16th may 2013. i now urge all stakeholders to read the new regulations carefully and make appropriate representations where need arises. the commercial banks in particular will play a critical role in giving guidance to their customers on the regulations. the si has already been posted to the bank of zambia website which can be accessed from