Over K3.178 trillion old currency withdrawn from circulation

The Bank of Zambia (BOZ) says it has withdrawn about K3.178 trillion (KR 3.178 billion) as at the end of 28th February 2013 and issued about KR three (3) billion (K3.178 trillion) since the new currency was introduced into circulation at the beginning of the year.

BOZ Head of Public Relations Kanguya Mayondi says this represents 82.71 percent withdraw of cash in circulation at the close of the year 2012 which stood at K3.841 trillion (KR3.841 billion).

Mr Mayondi revealed this in Lusaka yesterday in response to a ZANIS press query.

Mr Mayondi also said on 25 January, 2012 the Bank of Zambia announced that it had approved the recommendation to rebase the Kwacha by dividing the existing banknotes by 1,000 which in effect caused the cancellation of three zeros on the existing banknotes.

He said as of January 2013, new notes and coins were issued in circulation to run alongside the old currency up to June 30th 2013 when the old notes are expected to be phased out.

He said the central bank was on track in withdrawing all of the old currency from circulation before the deadline in June this year.
And some members of the public in Mumbwa have expressed ignorance that the exchange of the old kwacha notes will continue up to December 31, 2013.

This came to light yesterday when Bank of Zambia officials visited the district to assess the impact on the use of the rebased notes and coins.

During a survey in the market and shops some members of the public expressed ignorance after being asked on what will happen to the old notes after ceasing to be legal tender on June 30.

Some said they would destroy the notes after 30 th June as they will no longer be in use.

BOZ delegation leader Maeke Njunju told marketers that the bank’s design is to continue exchanging the old kwacha notes up to December 31, 2013.

And Mumbwa Market Chairperson Humphrey Shamasale said although people in the township were responding well to the new currency they have no adequate knowledge on the conversion of smaller notes to coins.

Mr Shamasale said traders are not conversant especially on the 5n, 10n, and 50n as they have problems to equate them to the old K500, K100, and K50 notes.

Another businessman of Asian origin complained of inadequate supply of coins which makes the public to resist acceptability.

Meanwhile the police in Mumbwa are holding one man for laminating and glue two sides of the new bank notes

Police sources said the man in his 30s was arrested after he laminated the back and front parts of a K100, K50 and K20 specimen notes cut from posters.

He is expected to appear in court after police has concluded investigation.