21 November 2012

Zambia: No Post-Dated Cheques Beyond December 31 - Baz

THE Bankers Association of Zambia (BAZ) has urged bank clients to stop issuing post-dated cheques beyond December 31 2012.

This is in view of the central bank's announcement that the currency will be rebased effective January 1, 2013.

"In order to facilitate for the smooth transaction, customers are here by informed to desist from issuing post-dated cheques as those beyond December 31 will be cashed in rebased currency," the statement from BAZ said.

The statement said if the cheque was issued in the old currency but post-dated beyond December 31, 2012, the amount that would be paid out from the account could be more than the rebased amount.

"For example a cheque for K100, 000 in the old currency beyond the December 31, the amount that will be paid will be K100,000 in the rebased currency instead of K100 in the new currency," the statement stated.

The statement said in order to avoid the risks, customers should avoid issuing post-dated cheques.

BAZ has further advised customers who may have already issued cheques to contact the payees and make alternative payment arrangements to avoid loss of value.

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