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BoZ Says “REMOVAL Of 3 Zeroes WONT Affect VALUE Of KWACHA”
The Bank of Zambia has commenced the process of procuring the rebased currency.
Bank of Zambia head of public relations Kanguya Mayondi has disclosed in a statement to QFM that once the rebased currency is procured and delivered by the printers and minters,it will be issued to circulate side-by-side with the existing currency for a period of time.
Mr Mayondi says this is to allow for an orderly withdrawal of the existing currency.
He says during the period over which the existing currency and the new currency will be circulating side-by-side,providers of goods and services will be required to display prices in both the existing and the new currencies.
He explains that for example if the price of a loaf of bread costs K3,500, the provider of bread will display the price of bread as K3.50 ngwee and K3,500.
Mr Kanguya says the general public should continue using the existing bank notes in their daily transactions until such a time that the new currency is issued in circulation.
And the Bank of Zambia has clarified that the rebasing of the Kwacha does not change the value of the currency and the purchasing power.
A national currency is rebased due to the need to address costs associated with an accumulated loss in the value of a currency that undermines its basic function as a store of value, medium of exchange and measure of value.
The loss of value is typically as a result of high inflation rates over a prolonged period of time.
Posted by
peace
January 25, 2012 at 10:27 pm
gud 2 hear.this rebasing sounds like a good deal
commando
January 25, 2012 at 10:28 pm
Iyo ni boom! Very good move by the gvt of the pipo. Not by the gvt of few pipo who wanted to plz their pockets. I never regret voting for the big man. BRAVO H.E. This is the change we exoected.
shaz
January 25, 2012 at 10:30 pm
Really currently 650 kwacha = 1 rand
5200 kwacha =$1 the new system will mean 65 ngwee= 1 rand and 5.2 kwacha =$1. Do u see where am going this implies a stronger kwacha which is not true. How does it affect us on international market
Accountant
January 25, 2012 at 10:58 pm
@shaz.the real value of th kwacha wil remain th same its jus its norminal value which wil change…..rebasing does not mean th kwacha wil appreciate against foriegn currencies it wil jus fascilitate for easy business transaction btwn local n international companies……
Economist
January 25, 2012 at 11:04 pm
@accountant,yo explanation is very simple n straight forward yet complicated to others!theres need for th government to educate people like shaz who think tht rebasing wil make th kwacha stronger against th dollar.
sata *****
January 25, 2012 at 11:45 pm
good move *****. but work on da indicators so we can raise the purchsing power.
Wise youth
January 26, 2012 at 12:20 am
Pipo!!!!!
the big picture am looking at is the ilegal money circulating like liatos k2.1b wil be now brought to the open. it wil be like a fresh start And a bad drim to pipo with stolen money.
understand???????
Air Mukwai_
January 26, 2012 at 3:58 am
1.Certainly this is our regular parlance of one pin=K1000: 10 pin=K10,000.
2.a good move to wriggle out of carrying large quantities of money and good for the gvt to keep the economy afloat against the backdrop of economic uncertainty but be on a watch out of some practices that may devalue the kwacha causing hyperinflation. the demonetized old bank notes to the introduce of new currency. would only work if we continue maintaining the economic and political permanences in the country as observed in other country where this modus operandi has had worked.
3.a number of banks must not skirting banking laws in their operational for they will be reliable placed under curatorship.
Economist
January 26, 2012 at 6:23 am
Gentelemeni. It’s “Debasing” and NOT “Rebasing” a currency.
Luam
January 26, 2012 at 7:28 am
If value remains the same, then we treading on a false picture. How much will be in my bank account if I 10m and the change is effected? 10pin? And will be its value?
Luam
January 26, 2012 at 7:30 am
If value remains the same, then we treading on a false picture. How much will be in my bank account if I have 10m and the change is effected? 10pin? And what will be its value? 10m or 10pin?
Luam
January 26, 2012 at 7:32 am
If value remains the same, then we are treading on a false picture. How much will be in my bank account if I have 10m and the change is effected? 10pin? And what will be its value? 10m or 10pin?
kaka
January 26, 2012 at 8:06 am
Ba zed pliz..their are only removing three zeros from the currency.the value and strength remains the same at the moment.loving the govt all the way
rubish
January 26, 2012 at 8:11 am
U thiink this iz zimbabwe . Wait n c wat hapenz fwaka out bonse
imiponto!
January 26, 2012 at 8:31 am
kwena ee! Iyi e boom nama fity ngwee ,twente ngwee kubomba no more rounding off figures in shoprite!
Nostalgia
January 26, 2012 at 9:22 am
Allow me to explain-i hope in trying to simplify it, i wount complicate it.
ok so this is whata going to happen. it will be like a person changing his/her name e.g
1. you were once known as maximo (old name) and then you changed to say bikiloni (new name)
2. what this will do! the People that know you as maximo (old name) will know you as that, and the people that you are introduced you will know you as bikiloni (new name)quote Accounatnt “foriegn currencies it wil jus fascilitate for easy business transaction btwn local n international companies”
3 so the point is the value of the currency stays the same- but will give it a new name example.
instead of calling it k1,000 you will call it k1
Does this mean you will have less money in your pockets? NO!! e.g currently you need 5 * k10,000 notes to make k50,000
when its changed – you will still need 5* K 10 notes to make k 50 (which is another name for k 50,000) any other words it will have the same value – and will get you the same things.
This also answers other questions raised on carrying sacks of money – the bottomm line is you will carry almost the same amount of notes. except this time around you will also have coins.
finally on recovering stolen money.
the thing is the notes wount be changed in a day.
so they will be enough time for people with billions to buy say dollars or simply change to new notes in small amounts by different people or katondo, buy property etc so sowi people. it wount change a thing well the slow ones might be caught. BEFORE I FORGET BUY CALCULATORS FOR NOW. LOL.
kamuchomesa
January 26, 2012 at 9:28 am
Mwebaleposa ama ngwee mwikaya ingila mufi shalaa mukufwaya aya kale, baka funya yambi. loving government of the people by the people!this is the change we wanted to see.
Janet
January 26, 2012 at 10:01 am
This means that those who get ZMK 5,000,000.00 as their basic pay they will get ZMK 5,000.00 and who are currently geting ZMK 1,000,000.00 will be getting ZMK 1,000.00 and so on.
MUNYELO PWETE!
January 26, 2012 at 10:18 am
CHONCHO!
nakferd
January 26, 2012 at 10:42 am
The purpose of posting our comments is to educate and learn.now,if your intended purpose is either of the duo,you mus adopt the simplest ever vocabulary to accommodate every audience and solicite quality feedback.the technical jargon that encompases some comment monopolises knowledge showering which hinders participation therefore anhilating the less priverlaged in that field.check your posts and no need to be pointed fingers at.big ups to those simplificators and no need to mention you.
Lubz
January 26, 2012 at 2:58 pm
@nostolgia, well said…surely, need I say more???
Wren
January 26, 2012 at 3:03 pm
Kanshi tukalasendelafye impiya muma bucket nomba!
Ex-CBU-CS
January 26, 2012 at 3:08 pm
Nostalgia your explanation is simple and straight forward
nid a money
January 26, 2012 at 4:49 pm
interesting
joinmwa
January 26, 2012 at 4:55 pm
abapupu balamonekela,cash crop money takuli ukumena nomba take it to the bank but the strangers eye is watching ,waikatwa.