The Bank of Zambia (BoZ) has announced the introduction of a new family of Zambian currency, set to be launched on March 31, 2025. This initiative aims to enhance security features, improve the quality of currency in circulation, and facilitate everyday transactions.
New Currency Features
The new currency family will consist of six banknote denominations: K500, K200, K100, K50, K20, and K10. In addition, six new coin denominations will be introduced, including K5, K2, K1, 50 Ngwee (50N), 10 Ngwee (10N), and 5 Ngwee (5N).
Despite these changes, the ISO code for the Zambian Kwacha will remain ZMW, with the numeric code 967 and the currency symbol ‘K’.
Purpose and Legal Framework
The introduction of the new currency, approved by the Board of the Bank of Zambia in July 2021, is in line with Section 17(1) of the Bank of Zambia Act, 2022, which grants the central bank authority over currency issuance.
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One of the key objectives is to incorporate enhanced security features to combat counterfeiting, ensure durability, and simplify transactions through more practical denominations. The new banknotes and coins are designed to reflect Zambia’s rich heritage, featuring iconic elements such as the country’s unique flora, fauna, and breathtaking waterfalls.
Transition and Public Awareness Campaign
To facilitate a smooth transition, the old currency will remain legal tender for a specified period, which will be detailed in a forthcoming Statutory Instrument (SI) issued by the Minister of Finance and National Planning. The SI will outline the procedures for exchanging old currency for new notes and coins, including the designated exchange points and exchange period.
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Additionally, the Bank of Zambia plans to conduct a nationwide sensitization campaign to educate the public on the new currency’s features. This campaign aims to ensure familiarity with the updated notes and coins, preventing confusion and promoting a seamless transition.
Historical Context
This is not the first time Zambia has updated its currency. Previous changes have been introduced to enhance security features and respond to inflationary pressures. However, unlike the 2013 currency rebasing, which involved removing three zeros from the kwacha, the current update does not involve a redenomination. Instead, it focuses on improving the durability and security of the currency to restore public confidence in its physical form.