Zambia’s Currency Overhaul
By Francis Maingaila
Zambia24 - (31-03-2025) - The Zambian government has unveiled a new series of currency banknotes and coins with enhanced security features, durability, and national identity.
Danny Kalyalya, the Governor of the Bank of Zambia, said during the launch that the redesigned currency, known as the Heritage Series, features advanced security measures to curb counterfeiting while incorporating symbols that reflect Zambia’s rich heritage.
He explained that the decision to introduce new notes aligns with the constitutional mandate of the central bank to issue currency, a responsibility formally enshrined in the 2016 Constitution.
Kalyalya noted that inflation had eroded the purchasing power of the K100 and K50 notes, which were originally intended as high-value denominations for storing wealth.
Meanwhile, the K5 and K2 notes have suffered from excessive wear and tear due to frequent use.
“The introduction of the new banknotes follows careful evaluation of their durability, with considerations on whether to shift entirely to polymer or maintain a combination of polymer and paper,” Kalyalya stated.
The new currency features prominent security enhancements, including color-shifting ink, an intricate watermark of a fish eagle, a see-through register, and an embedded security thread visible under ultraviolet light.
Additionally, the notes include raised tactile markings to assist visually impaired individuals.
“The security measures will make counterfeiting extremely difficult while ensuring ease of authentication by the public,” the governor emphasized.
The notes also showcase Zambia’s cultural and natural heritage, with depictions of the country’s Big Five wildlife and the national coat of arms.
BoZ assured that the rollout would be seamless, with existing notes remaining in circulation alongside the new series until further notice.
Finance Minister Situmbeko Musokotwane defended the introduction of the K500 note, stating that it will not fuel inflation but instead enhance transactional efficiency in Zambia’s economy.
Speaking at the launch, he clarified that increasing the highest denomination does not equate to excessive money supply, which is often linked to inflation.
Musokotwane explained that inflation is primarily driven by fiscal mismanagement rather than changes in currency denominations.
He assured the public that the introduction of the K500 note is a response to economic realities, making large transactions more convenient without altering the overall money supply.
He further highlighted that Zambia's economic growth is on track despite recent challenges, with government economic reforms, particularly in the mining and energy sectors, contributing to a positive outlook.
Musokotwane noted that the country is making progress in expanding digital payments to reduce reliance on physical cash, which will complement the new denomination.
Addressing concerns about inflation, Musokotwane emphasized that the government is implementing policies to stabilize prices, particularly in key sectors like agriculture and manufacturing.
He predicted that inflation would return to single-digit levels soon, attributing it to improved supply chain management and economic policies.
Musokotwane also compared Zambia’s situation to other countries, pointing out that large denominations exist elsewhere without causing economic instability.
He urged Zambians to embrace financial modernization, including increased use of mobile money and digital transactions, as part of a broader effort to streamline the economy.
The Finance Minister reaffirmed the government’s commitment to economic growth and stability, urging stakeholders to support ongoing financial reforms aimed at fostering a more resilient and efficient economy.
Rodney Sikumba, the Minister of Tourism, said the launch of Zambia’s new family of banknotes and coins has marked a significant milestone in the country’s efforts to promote tourism and diversify its economy.
The new currency, unveiled during a ceremony attended by key government officials, is designed to showcase Zambia’s unique natural heritage, spotlighting its biodiversity and iconic wildlife.
Sikumba emphasized that the new currency features images of Zambia’s wildlife, including the African buffalo, giraffe, rhino, and leopard, along with endemic species like the Black Lechwe.
“This new currency is a visual narrative that tells the story of Zambia’s extraordinary natural resources,” Sikumba said.
“It invites both Zambians and international visitors to explore the country’s diverse natural wonders.”
The new currency also includes native tree species, such as the Tick tree and Mukui tree, symbolizing Zambia's connection to its land and ecosystem.
Sikumba emphasized that preserving Zambia’s natural heritage while enhancing tourism infrastructure is crucial for the country’s growth.
Sikumba also encouraged Zambians to take pride in their country’s natural beauty and become ambassadors for Zambia’s tourism sector.
With tourism playing an increasingly important role in Zambia’s economic development, Sikumba expressed confidence that the launch of the new currency would help raise global awareness of Zambia's offerings and attract more visitors.
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