28 December 2012

Zambia: Govt Prints K6 Trillion Rebased Currency

THE Government has printed K6 trillion to meet Zambia's rebased currency needs over the next few years, the Bank of Zambia (BoZ) has said.

BoZ currency rebasing project manager Morris Mulomba said in Ndola yesterday that K3.4 trillion of the K6 trillion would be used to replace the old currency which was in circulation and the rest would be kept in reserves for future use in case of any eventualities arising from the currency replacement exercise implementation over the next few years.

Mr Mulomba said about K3.4 trillion old kwacha notes are believed to be in circulation.

"As central bank we are just putting in place these measures to see to it that all problems arising from the change from old kwacha to the new ones are adequately addressed.

"We want to replace the old Kwacha and resolve the various money changing and replacement needs which may arise," he said.

BoZ has put in place measures which would facilitate the recalling of all the kwacha notes in the diaspora under the currency rebasing exercise which starts on January 1, 2013 and ends in 2015.

He said the 3.4 trillion rebased Kwacha was sufficient to meet all the country's currency rebasing exercise which would be implemented between January 1, 2013 and 2015.

Mr Mulomba said Government had made arrangements with the Ministry of Foreign Affairs to ensure that the millions of kwacha believed to be used in the neighbouring Democratic Republic of Congo (DRC) and other countries which share borders with Zambia, were returned and subjected to the rebasing exercise.

"Apart from the DRC, we know that the Zambian currency is being used as legal tender at both sides of the Nakonde, Mwami and Victoria Falls border posts among other places and the Government through the Ministry of Foreign Affairs has made arrangements to sensitise the people who use the kwacha outside Zambia about the rebasing exercise," he said.

Mr Mulomba said the National Savings and Credit Bank (NATSAVE) and the Zambia Postal Services Corporation (Zampost) had been engaged to act as the main outlets for money changing during the currency rebasing exercise implementation period in all parts of Zambia.

He said the chambers of commerce and industry and commercial banks have also been engaged in sensitising members of the public when conducting the money changing exercise during the rebasing period.

Mr Mulomba said the rebased kwacha had already been taken to the BoZ currency distribution centres throughout the country.

He disclosed that the Bank of Zambia would see to it that people in all parts of Zambia were reached during the public sensitisation process.

"We are aware about plans by some people to swindle others by taking advantage of the confusion which can arise from exchanging the old one hundred kwacha notes which is equivalent to the new 10 ngwee coin and the new K100 which will be equivalent to the old K100,000," he said.

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