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Wednesday, 19 September 2012

Kwacha Rebasing Technical Paper

By Jessica Achberger

As we approach the rebasing of the Kwacha, there are still many unanswered questions as to the procedure. In a technical paper from earlier this month, the Bank of Zambia explains the outline procedure for rebasing. The paper is embedded below.
Currency Rebasing - Bank of Zambia Technical Paper (August 2012)

We ask, what are your concerns around this process. Do you think it will benefit the country?

1 comment:

  1. The Bank of Zambia apparently does not live in the real world.
    The K50 note no longer buys anything, as even a three year old can tell you. There is no point replacing it with a 5n coin.
    We do not actually need a K2 either. It is probably a waste of resources producing it.
    A higher denomination might be more useful such as a K500(K500,000). In the 70's, the highest note, K20, was a month’s salary. If we make a K500 it will still be less than a month’s salary.
    All the rules about rounding off are largely irrelevant. It seems to have escaped the notice of the bank that everybody (except ZESCO, ZAMTEL, Shoprite and government) is already rounding off to the nearest K500 (which will be 50n)
    The rules about rounding off benefits and salaries are completely unnecessary. The maximum benefit to an employee is less than K100 (10n) a year which won’t buy much anyway.
    The requirement for all prices to be in both currencies for six months is totally ridiculous and will increase, rather than reduce, the amount of confusion. Just change all prices on Jan 1st and be done with it.
    If all large businesses are supplied with the new currency a few days before the change over things will go more smoothly. When the kwacha was first introduced, 75% of the currency was exchanged in the first three weeks by having currency exchanges in all the major shops.


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