The general improvement in the availability of foreign exchange necessitated the Bank of Zambia’s participation in the market. In this regard, the Bank recorded a net purchase of US $ million compared with net purchase or sale of US $ million in the third quarter. Balance of payments 35. Preliminary data show that Zambia recorded an overall balance of payments (BoP) deficit of US $ million during the fourth quarter of 2010, compared to the surplus of US $ million recorded in the third quarter of the year. This was largely due to the unfavourable performance in both the current account balance and the capital and financial account. 36. During the period under review, the current account surplus declined to US $ million from US $ million recorded the previous quarter, largely on account of a decline in the merchandise trade surplus and widening of the net income deficit. 37. The merchandise trade surplus declined by 9.2% to US $ million in the fourth quarter of 2010, from US $ million recorded in the third quarter, following an increase in imports, which outweighed the rise in exports. Merchandise export earnings, rose by 5.2% to US $ million from US $ million recorded in the previous quarter. This was due to an increase in metal exports earnings by 7.3% to US $ million from US $ million in the previous quarter. 38.
There are also a wide range of investment and treasury instruments, as well as fund and wealth management products for the management of portfolios of businesses. In terms of takaful, there is also a broad range of products, including takaful coverage for physical properties and assets of businesses, as well as protection for employees. The growing significance of the international dimension of Islamic finance in this recent decade has witnessed its increasing role in bridging economies through the mobilisation and channelling of funds to productive investment activities across borders. Despite the challenging global environment and the increased uncertainties, the Islamic finance industry has continued to experience the double digit growth of 21 percent, and total Shariahcompliant assets have surpassed the USD1 trillion mark. There are now more than 600 Islamic financial institutions operating in more than 75 countries in both Muslim and nonMuslim jurisdictions. The emergence of new financial centres in Asia and the Middle East and their increased connectivity has strengthened the foundations for intra- and inter-regional linkages in trade and investments. More recently, Islamic finance is also being introduced in the EU region. The establishment of Islamic finance in key financial centres, namely London and Luxembourg, presents opportunities for businesses in the EU to raise funds using Islamic financial instruments such as the sukuk, and to diversify investment portfolios with Islamic fund and wealth management products. The development of Islamic finance has also been initiated in several other European economies.