23 January 2013

Zambia: BOZ Collects K500 Billion Old Notes

THE Central Bank has so far collected K500 billion worth of old currency from members of the public which has been replaced by KR500 million during the ongoing currency rebasing exercise.

Bank of Zambia (BoZ) Governor, Michael Gondwe said the K500 billion was collected from all parts of the country including border areas between January 1, and yesterday.

Dr Gondwe said the Kwacha rebasing exercise which the Central Bank was undertaking in collaboration with the Zambia Postal Services Corporation (ZAMPOST) and commercial banks acting as currency exchange programme agents, was going on well.

Dr Gondwe said the Central Bank expects the ammount of old Kwacha being taken for exchange to increase towards the end of the rebasing exercise on June 30.

He said the Central Bank would not heed calls from some sections of society to have the period of money changing reduced.

Dr Gondwe was speaking in Ndola yesterday after inspecting the Zampost currency rebasing project.

"As we approach the June 30, 2013, deadline for the parallel use of the new and old currency, there could be a rise in the volumes of transactions for exchange. We should therefore be ready and mindful of such eventualities and continue to sensitise the public on the need to exchange the old currency for the new one throughout this period," Dr Gondwe said.

The Central Bank was aware of the fact that Zampost plays a strategic role in providing financial services in places where there were no banks or other financial of institutions.

Zampost Post Master General Macpherson Chanda said his organisation was happy that that BoZ was impressed with the work it was doing as the leading agent in the currency exchange project.

Mr Chanda said positive public response to its rebasing awareness campaigns was the main reason the success in the currency exchange programme which was being done at all post offices through out the country.

"We have a K10 million currency exchange transaction ceiling per day with individuals and so far, we are meeting the public demands without difficulties although we are talking to the Central Bank if it can put in place measures which will address rebased currency needs at all transaction points," he said.

Copyright © 2013 The Times of Zambia. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.