THE Bank of Zambia (BoZ) has set January 1, 2013 as the date for the change-over for the rebased currency.
Consequently, the rebased currency will become legal tender on the said date and will be accepted as a medium of exchange in the country.
BoZ head of public relations Kanguya Mayondi disclosed the development in a statement yesterday.
He said January 1 to June 30, 2013 has been designated as transition period during which both the old and rebased currencies will circulate simultaneously.
Mr Mayondi said with effect from January 1, 2013, financial institutions will be required to make payments to clients in the rebased currency.
He said all banks will be converted to the rebased currency as well as automated teller machines (ATMs).
“All amounts shown on receipts and points of sale machines should be expressed in the rebased currency utilising the new currency code. All company balance sheet items as at close of business December 31, 2012 shall be converted to the rebased currency,” the statement reads in part.
Mr Kanguya added that all accounting, financial and supporting documentation for businesses should be reverted to the rebased currency.
“Likewise, all ledgers used by business entities as well as information on their information technology applications shall be prepared in the rebased currency and amounts shown on debit instructions such as cheques and promissory notes issued by December 31, 2012 for settlement after this date shall be converted to the rebased currency,” the statement reads in part.
Mr Kanguya, however, said financial institutions will continue to exchange old currency to rebased one even after the expiry of the grace period.
He said the exchange of currency is expected to continue for 18 months until December 31, 2014.
Mr Kanguya said all business entities are required to commence preparations for adaptation of all systems and infrastructure among other things in readiness for the rebasing.
He said in September next month, the BoZ will issue technical guidelines pertaining to the currency rebasing process to ensure all stakeholders are guided.