Zambian Kwacha: Difference between revisions
From Chalo Chatu, Zambia online encyclopedia
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Until 1991, all Zambian banknotes featured a portrait of President [[Kenneth Kaunda]] on the obverse. After 1992, all notes have instead featured a [[African fish eagle|fish eagle]] on the obverse. After 1989, all the reverses featured the Chainbreaker statue. In 2003, Zambia became the first African country to issue [[polymer banknotes]]. The 500 and 1000 kwacha were both printed on polymer. Although the old 20 kwacha note was still in circulation until 2012, such is the rarity of this note that most major retailers rounded prices up to the nearest 50 kwacha when calculating a total. Most items in major supermarkets were displayed using 20 kwacha in the value (e.g., 1980 kwacha). | Until 1991, all Zambian banknotes featured a portrait of President [[Kenneth Kaunda]] on the obverse. After 1992, all notes have instead featured a [[African fish eagle|fish eagle]] on the obverse. After 1989, all the reverses featured the Chainbreaker statue. In 2003, Zambia became the first African country to issue [[polymer banknotes]]. The 500 and 1000 kwacha were both printed on polymer. Although the old 20 kwacha note was still in circulation until 2012, such is the rarity of this note that most major retailers rounded prices up to the nearest 50 kwacha when calculating a total. Most items in major supermarkets were displayed using 20 kwacha in the value (e.g., 1980 kwacha). | ||
===New Kwacha (2012 series)=== | |||
On January 23, 2012, the [[Bank of Zambia]] proposed certain measures in regards of the [[redenomination]] of the Zambian Kwacha.<ref>Bank of Zambia press release [http://www.boz.zm/currencyrebase/Rebasing%20Fact%20Sheet.pdf Kwacha Rebasing - All you need to know!]</ref> Such recommendations were initially approved by the government, being one of the measures required to address costs associated with the continuous [[devaluation]] of the national currency, due to [[depreciation]] throughout time, as a direct result of several years of high [[inflation]] rates that characterized the [[Economy of Zambia|national economy]] during the late decades of the [[20th century]], and the early years of the [[21st century]].<ref>Bank of Zambia press release [http://www.boz.zm/currencyrebase/Rebasing%20Fact%20Sheet.pdf Kwacha Rebasing - All you need to know!]</ref> The recommendations were assented to the [[National Assembly (Zambia)|parliament]] on November 3, 2012. Later, The Re-Domination of Currency Act ([http://www.parliament.gov.zm/sites/default/files/documents/acts/Redomination%20of%20Currency.PDF Act 8 of 2012]) was enacted on December 3, 2012.<ref>[http://www.parliament.gov.zm/node/3128 The Re-Domination of Currency Act 2012 - National Assembly of Zambia]</ref> | |||
The old currency unit was divided by 1000, hence, removing three zeros from the preexisting K50,000, K20,000, K10,000, K5,000, and K1,000. The lower denominations of K500, K100, and K50 were also divided by 1000 and were changed into the 1 Kwacha, 50, 10, and 5 Ngwee coins respectively. On the other hand, the preexisting K20 banknote was removed from circulation due to its extremely low purchasing power. | |||
The Bank of Zambia announced January 1, 2013 as the changeover date. On the same day, the new redenominated currency became the legal tender of Zambia.<ref>Bank of Zambia press release [http://www.boz.zm/Publishing/35/35_KWACHA_NGWEE_Presentation_COMMERCIAL_BANKS.pdf Presenntation to commercial banks: Identifying the genuine Zambian currency]</ref> The old and new currencies were allowed to circulate side-by-side for a transition period of six months, until 30 June 2013.<ref>[http://www.zanaco.co.zm/index.php/more-news/160-zanaco-rebasing Zanaco Kwacha Rebasing Q & A]</ref> During this period, the old currency was denoted by 'K', whilst the new one was denoted by 'KR'. After the six-month period, the 'KR' symbol was dropped, and the new currency was referred to by the 'K' symbol. | |||
By June 26, 2013, the Bank of Zambia managed to withdraw 3.7 trillion Kwacha in old banknotes, accumulating to about 95.3% of the circulating banknotes. Although the old currency ceased to be legal tender four days later, the Bank of Zambia Deputy Governor, announced that residents who were still holding to the old currency, especially those living in rural areas, could still be able to exchange the old currency for the new one through [[commercial bank]]s, and other designated agents.<ref>[https://www.lusakatimes.com/2013/06/28/boz-assures-the-nation-on-old-kwacha-note/ Lusaka Times - Zambia : BOZ assures the nation on Old Kwacha note]</ref> | |||
==See also== | ==See also== | ||
