Zambia to Tap Banks in $378 Million Unorthodox Local Debt Sale

Zambia’s central bank aims to raise about 8.9 billion kwacha ($378 million) by asking banks to sell dollars and use the proceeds to buy local-currency bonds as it seeks to secure funds to pay government fuel-import arrears without depleting its foreign-exchange reserves.

The Bank of Zambia has written to the chief executives of local commercial lenders about the proposed sale, according to a copy of the letter dated June 20 seen by Bloomberg and confirmed by two banks.