The Bank of Zambia (BOZ) has advised the nation not to panic over the old Kwacha currency note which ceases to be legal tender on 30th June, 2013.

BOZ Deputy Governor Bwalya Ng’andu says this is because the Central Bank has put in intermediary measures to address the issue.

He said it was for this reason that people especially those in rural area should not panic as the central bank has put in measures to address such situations.

He has advised the nation that the old kwacha notes will still be accepted for exchange with the new currency.

“Zambians should relax and exchange their money through commercial banks and other designated agents and therefore those still holding to their old kwacha should not transact using it but take it to the nearest bank or authorized agent and exchange it without any cost,” said Dr Ng’andu.

The BOZ Deputy Governor has also disclosed that the long awaited Statutory Instrument no, 55 is now out .

He has advised the media fraternity and other interested parties to check for it on the central bank’s website to enable them understand what it entails.

Dr Ng’andu said Statutory Instrument no. 55 will enable the central bank to monitor the liquidity levels in the country.

He also said that with the enactment of this Statutory Instrument, BOZ will be able to know the correct amount of money leaving and entering the country thereby controlling money laundering.

Dr Ng’andu further said Statutory Instrument no. 55 which replaces no. 32 will also enable BOZ to monitor what is happening on the market as well as to know business companies that are not tax compliant among other benefits of the instrument to the nation.

BOZ Corporate Public Relation Manager Kanguya Mayondi, Assistant Director, Currency Banking and Corporate Public Services Department, Angela Chileshe among others were the notable figures who attended the meeting at the Trade Fair grounds.

And Assistant Director, Currency Banking and Corporate Public Services Department Angela Chileshe disclosed that as of 26th June 2013, BOZ has withdrawn in circulation a total of K3.7 Trillion old currency which translates to 95.3 per cent and that only K182.5 Billion old currency is still in circulation.

Ms Chileshe however, said though it is not possible to withdraw all the old currency in circulation, the central bank will try be all means to make sure only negligible will remain in the hands of individuals and that will be due to other factors beyond the bank’s control.

She also brushed assertions that there is still more money in rural areas, saying BOZ had earlier received similar information about Nabwalya area as among those with more of such kind of money but it was discovered to the contrary as only KR 5,000 (K5 million) was collected from there.

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Dante Saunders says the issue of the budget overrun is not a question of debate by political leaders but a fact.

Mr. Saunders tells QFM News that government should find a solution instead of running away from the fact by stating that it has enough money.

He says it is for the same reason that people do not agree with the decision to remove subsidies, accusing government of trying to cover up the budget overrun at the expense of the people of Zambia.

Mr. Saunders adds that the government of former president Rupiah Banda left a lot of money in the foreign reserves but that no one has accounted for how the money has been used since the former president left office.

He has encouraged Zambians should question how their money is being used by government.

Minister of Finance Alexander Chikwanda has noted that over the years, the planning and budgeting processes in Zambia have lacked a comprehensive and well articulated guide.

Mr. Chikwanda said this has resulted in fragmentation of the key facets of planning, budgeting, monitoring and evaluation mechanisms.

He made these remarks last evening when he officially launched the consultative process on the planning and budgeting policy on the Zambia National Broadcasting Corporation (ZNBC) television.

The consultative process will culminate into the development of the planning and budgeting bill.

Mr. Chikwanda indicated that the policy and ensuing Act will make provisions that will firmly anchor national development plans as benchmark documents to transform national budgets to an extent that they become tools for operationalising national development plans.

He explained that as a result of this development, the resources will be allocated and appropriated in line with projects and programmes contained in national development plans as a matter of priority.

The Minister added that the draft policy also spells out mechanisms for ensuring that programmes and projects were thoroughly assessed through a comprehensive appraisal system and effectively monitored so as to yield the intended results.

He said the draft policy will also enhance transparency, accountability and provide a basis for evidence based decision making process.

Mr. Chikwanda stated that the policy further stipulates the roles, responsibilities and procedures required in developing national plans and how they will be financed and interfaced with annual budgets and Medium Term Expenditure Frameworks (MTEFs) and other policies and operational tools.

Furthermore, the Finance Minister said the draft policy provides for more enhanced system of engagement with the people and streamlines their participation mechanisms at all levels including the grassroots.

He said this was so because the Patriotic Front (PF) government desired to ensure that national plans and programmes were rooted in people’s aspirations.

Mr. Chikwanda has therefore called on the members of the public to read and digest the contents of the draft planning and budgeting policy with a view to provide suggestions on how it can appropriately be refined.

He said his ministry, through the national planning department and budget office will be at hand to articulate issues to the citizenry that are contained therein.

Mr. Chikwanda has also called on provincial administrations to carry out provincial consultations through the provincial development committees to elicit as broadly as possible comments from various stakeholders.

The Minister further implored all stakeholders to be open- minded and candid in their submissions so that the document is enriched.

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Government has reiterated that the soon to be implemented Statutory Instrument(SI) number 32 of 2003 is not aimed at reintroducing exchange controls but at providing transparency and securing benefits for the economy.

And the Bank of Zambia (BoZ) has set a threshold of $10,000 (about KR52, 000) of goods for importers and exporters.

BoZ Balance of Payment (BoP) Team Leader, Wilson Mazimba stated that the statutory instrument will allow the country to effectively monitor money flows from imports and exports.

Mr. Mazimba said people must not be worried about the new instrument because it has a lot of economic benefits which include increased revenue and foreign exchange liquidity.

He also said the new law will give proper and credible statistics on balance of payments in the country.

He said the SI will further accord businesses that were operating outside the financial system an opportunity to come on board thereby enhancing financial inclusion.

Mr. Mazimba said this in Lusaka yesterday when he presented a paper on the SI at a media breakfast that was organised by the First National Bank (FNB).

“Exporters will be allowed to avail us with monthly reports to allow us know and plan for the inflows and outflows,” he said.

Mr. Mazimba further said the SI will safeguard the export and import remittances in a bid to reduce the risk of money laundering.

At the end of April this year, Minister of Finance Alexander Chikwanda signed a statutory instrument that brought into force the Bank of Zambia monitoring of balance of payments regulations 2013, aimed at monitoring the BoP in a transparent and accountable manner.

Government then rescheduled the implementation of the SI from Thursday 16th May 2013 to Monday 1st July 2013 as contained in SI number 35 of 2013.

Mr. Chikwanda said the rescheduling of the SI implementation date was meant to give room to finance service providers and other relevant stakeholders to establish systems for adhering with the provisions of the instrument.

Meanwhile, the Bank of Zambia has set a $10,000 (KR52, 000) threshold for exports and imports in the country.

Mr. Mazimba stated that businesses were therefore allowed to export goods and services greater than or equivalent to the said amount in any other foreign currency.

He further explained that payments of more than the threshold but less than $100,000 will need to be remitted electronically while amounts more than $100,000 will be paid by way of irrevocable letters of credit.

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