’ s look at the trading activity and market liquidity on that day. in the two panels of slide 3, the green curve represents the spot rate for eurchf on 8 february 2018. the red curve represents two different variables : in the left - hand panel it denotes the intraday turnover for eurchf, while in the right - hand panel it shows the bid - ask spread, which is an indicator of transaction costs. finally, the salmon - coloured area shows the historical average. we can see that trading activity between 17 : 00 and 17 : 30 was above the historical 6 i should also add that knowledge - sharing between central banks has been stepped up at international level. cf., for example, the report by the bank for international settlements, monitoring of fast - paced electronic markets, 17 september 2018. page 5 / 9 average. by contrast, the bid - ask spread widened only slightly, before swiftly returning to normal levels. as a result, despite the strong swiss franc appreciation, market liquidity remained strong. if we combine the information in these three charts, we can see that the swiss franc appreciation recorded on 8 february was accompanied by high transaction volumes, but this was absorbed comparatively easily by the market. this example shows how we analyse the microstructure of the market in real time. but capturing micro - changes in real time is not enough to allow an understanding of the underlying market dynamics of the swiss franc. rather, we need to be able to tie them to longer - term trends, in other words a period spanning several weeks or months. since the beginning of the year, for instance, we have observed three risk - off events that put upward pressure on the swiss franc, as illustrated by the red curve in chart 4. first, last february, concerns surrounding a faster - than - expected tightening of monetary policy in the us triggered a major stock market sell - off and a corresponding volatility spike ( green curve ). then, in may, political uncertainty in italy led to a considerable widening of the yield spread between german and italian 10 - year bonds ( blue curve ). demand for various asset classes regarded as safe havens, such as the swiss franc, increased. finally, in august, we witnessed a huge sell - off of certain emerging market currencies and an increase in their volatility ( yellow curve ). fears of global contagion resulted in the franc appreciating strongly. it remains a

caleb m fundanga : banking in zambia and the kwacha appreciation speech by dr caleb m fundanga, governor of the bank of zambia, at the german ambassador ’ s working lunch, lusaka, 7 june 2006. * * * • your excellency, the germany ambassador to zambia, dr. ireen hinrichsen ; • representatives of german banks in south africa ; • the german business community ; • representatives of local banks ; • distinguished ladies and gentlemen. on behalf of the zambian people and indeed on my own behalf, it gives me great pleasure to welcome our german visitors to zambia. i am deeply humbled to be invited for this business luncheon hosted by your excellency. this interaction, distinguished ladies and gentlemen, is very important to foster and enhance mutual co - operation between our two great nations. your excellency, with your permission, i will begin my address by discussing banking in zambia and then proceed to give some highlights on the recent economic developments in the country. distinguished ladies and gentlemen, in the early 1990s, zambia embarked on economic liberalisation, of which reforming the financial sector was a major part. specific measures which were undertaken included, among others, the removal of all restrictions on interest rates and elimination of controls on foreign exchange rates. interest and exchange rates are now market determined, principally based on demand and supply. a bank of zambia review of interest rates determination in 2003, nonetheless, showed that the key determinants of commercial banks ’ interest rates, particularly the lending rate, were the yield rates on government securities, level of statutory reserve requirements, inflation, weak policy credibility and high default risks on loans obtained. to enhance the role of the market in the determination of exchange rates, the interbank foreign exchange market ( ifem ) trading system was introduced in july 2003. the entrenchment of the ifem trading system has been characterised by increased interbank foreign exchange liquidity flows, particularly from mineral exporters. the financial sector reforms were aimed at improving the efficiency and intermediation of the banking system and also at enhancing competition amongst the players. the reforms entailed opening up entry of participants into the banking sector. with the liberalisation of the financial sector, several bank and non - bank financial institutions were established. the financial sector has expanded remarkably over time and the services provided have been improved. • the number of commercial banks has more than doubled to 13 from 4 banks prior to 1990. currently, the banking system is made