The statutory instrument number 33 of 2012 which restricts the use of foreign currency in all the domestic transactions has been amended to clear some of the ambiguities that existed in the old SI. The new SI78 makes it clear to the extent which one is restricted to use foreign currency. However, the SI has made it clear that the regulation does not apply to international transactions, foreign currency loans, advances or exchange conversion to a person, by a bank or financial institutions registered in the republic of Zambia. Further, the regulation does not apply to foreign currency deposits of a person held by a ban or financial institutions registered in the republic, foreign currency denominated bonds issues in the capital market. In addition to the above, the regulation does not apply to transactions involving foreign exchange risk hedging instruments issues by a bank or financial institutions registered in the country among others.
Further the SI 78 restricts people from engaging in any price mechanisms intended to circumvent the regulation which would have the effect of causing any quoted price to fluctuate from day to day by reasons of it indexation to a foreign currency. This means that input prices will not be parity and move upwards or downwards as the tradable currencies fluctuates. On the other hand the SI78 introduces an aspect that one cannot quote, demand pay or receive foreign currency as legal tender for a domestic transaction. This means no foreign currency shall be used to settle any domestic transactions.