Bank of Zambia Charts Bold Path to Stability in 2025, Says Economic Expert
The Bank of Zambia (BoZ) has demonstrated strong leadership and resilience in the face of economic headwinds throughout 2025, taking decisive actions to address inflation, currency volatility, and emerging global risks.
Economic expert Mr. Kelvin Chisanga lauded the central bank’s performance, highlighting several strategic interventions. “In 2025, the Bank of Zambia undertook bold and proactive measures to stabilize the national economy,” he said.
Among the Bank’s major policy moves was the tightening of monetary policy, marked by a series of interest rate hikes aimed at curbing inflationary pressures. This measure was seen as a critical step in managing the country’s cost of living and safeguarding consumer purchasing power.
To bolster economic resilience, the Bank also prioritized building foreign exchange reserves. “This provided a crucial buffer against external shocks,” Mr. Chisanga explained, noting that such reserves help stabilize the kwacha and instill investor confidence.
In a move toward modernization, the Bank introduced polymer banknotes — a durable and secure alternative to paper notes. This transition enhances currency longevity and reduces counterfeiting risks.
Further underscoring its forward-thinking approach, BoZ took steps to mitigate climate-related financial risks. This included promoting green finance and initiating climate stress testing within the financial sector.
“These are vital for ensuring long-term financial stability in the face of environmental challenges,” Mr. Chisanga added.
Despite persistent economic hurdles, Mr. Chisanga emphasized the Bank of Zambia’s unwavering commitment to macroeconomic recovery.
“The central bank’s actions in 2025 signal a strong intent to ensure financial resilience and rebuild market confidence,” he concluded.
