right time when our countries, which just a few years ago were clearly outsiders in the international capital markets, are also now taking financing decisions to fully participate in the international capital markets. i must admit that international financial markets can be a maze for new entrants, and so updating our skills by consulting others becomes a priority and adds a lot of value. i have little doubt that as you remain deliberating here, the sessions will be very interactive and will provide a lot of food for thought. i am certain that everyone here will find this event beneficial. ladies and gentlemen, with these few remarks i hereby declare this workshop officially open. i thank you for your attention.

efficiency in the allocation of resource in the economy. allow me to briefly highlight some of the key policy initiatives that the bank of zambia has recently introduced : 1 ) reduction of statutory reserve ratios : in the fourth quarter of 2011, the bank of zambia reduced both the statutory and core liquid asset ratios by 3 percentage points to 5. 0 % and 6. 0 % respectively. the policy measure was intended to loosen liquidity for commercial banks to enable them increase their lending to productive bis central bankers ’ speeches sectors of the economy. the measure was also aimed at influencing the pricing of the loans especially in light of high lending rates prevailing in the economy ; 2 ) increase in capital : a robust banking industry is indispensable for supporting investments in the economy. a lower capital base entails limited participation in the financing of investments in addition to increased vulnerability of the banking industry. from the last quarter of 2011, the banking sector saw significant regulatory reform as the capital thresholds for banks were increased. local owned banks are now required to have a capital base of k104 billion whilst foreign owned banks are required to have a minimum capital base of k520 billion. the revised thresholds are aimed at ensuring that we have the best possible environment in which banks can carry out these key functions. as i stated earlier, banks are specialised institutions and they are fundamental to the working of the economy and linked to all parts of the financial system. but the consequence is that if banks fail, the external effects can have an adverse impact on the financial system and the economy. that is why banks are required to maintain a certain level of minimum capital. in this regard, the central bank provides oversight through prudential supervision. therefore, the measures to revise the capital adequacy framework for zambia enhances the resilience of the sector to both internal and external shocks by improving the quality and quantity of the capital available for commercial banks ; 3 ) introduction of the policy rate : the policy rate was introduced in order to provide a benchmark rate for the banking industry on which pricing for lending products can be based. it also promotes transparency in the price discovery mechanisms in the banking sector while minimizing information asymmetry particularly that associated with the credit markets ; 4 ) statutory instrument no. 33 on bank of zambia currency regulations : this measure was introduced with a view to reinforcing the use of the zambian kwacha as the legal tender in the republic of zambia. the increased use of foreign currency cash