By NATION REPORTER
THE Economics Association of Zambia (EAZ) has implored Government to rescind its decision which limits the amount of money business houses can pay by cheque as it has affected trade in the country.
According to EAZ president Lubinda Haabazoka, cheque limits had affected business transactions, particularly in rural areas.
In a circular dated 14 October 2016 signed by the Bank of Zambia Deputy Governor- Operations Bwalya Ng’andu, the Central Bank stated that the new system was aimed at promoting the use of electronic payment methods.
The BoZ said all local currency denominated cheques cleared through the Clearing House would not exceed K25, 000. Previously, clients were allowed to clear as much as K100, 000. Cheques presented over the counter will also not exceed K25, 000, which was previously limitless.
But Dr Haabazoka lamented that the development was discouraging payments.
The EAZ president was speaking in an interview in Lusaka.
“Our appeal is to rescind their decision to limit the amount of money people can pay by cheque because preliminary investigations have revealed that it has affected trade especially in the rural areas.
“A cheque is an instrument that is used to transfer money from one account to the other so if you limit that, you are basically discouraging payments because no company moves with a swiping machine,” he said. Dr Haabazoka added: “so I think the central bank should encourage the use of check and as technology is developing, you are going to see cheques phasing themselves out on their own.”