Zambia saw demand for government securities rising in the first quarter of 2018, figures released by its central bank on Wednesday showed.
According to the figures, subscription rates for treasury bills and government bonds averaged 92.9 percent and 144.2 percent, up from 81.9 percent and 108.8 percent, respectively.
The central bank attributed the increase to mainly higher participation of non-resident investors on account of attractive yield rates and relative stability in the exchange rate.
“Resident investors continued to be the major holders of government securities. However, non-resident investors’ holdings of government securities continued to increase, albeit at a slower pace,” Denny Kalyalya, the governor of the central bank told reporters during a press briefing.
He however said longer tenors remained the non-resident investors’ preferred securities due to their relatively higher real yield rates, adding that this also signals their confidence in Zambia’s growth prospects. Enditem