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.