Pragmatist » June 2nd, 2013, 4:58 pm
I found this article published yesterday VERY interesting! A precursor of things to come...?!?!
Zambia Currency Rebased – Three Zeros Removed
Zambia: Boz Sucks K3.4 Trillion Old Currency From Circulation
BY JOSEPH BANDA AND MAIMBOLWA MULIKELELA
1 JUNE 2013
THE Bank of Zambia (BoZ) has so far withdrawn more than 92 per cent of the old currency valued at K3.4 trillion since the rebasing of the Kwacha in January this year.
BoZ head of public relations Kanguya Mayondi said that only 7.8 per cent of the old currency was in circulation and by April 30, the Central Bank pumped in a total of KR3.3 billion of the rebased currency, while K3.4 trillion of the old currency had been withdrawn.
Read More link on Right
"We targeted to withdraw approximately 90 per cent of the old currency from circulation in the first six months of 2013. However, as at April 30, 92.2 per cent had been withdrawn. The amount issued into circulation merely replaced the old currency," Mr Mayondi said.
He said the simultaneous circulation of the old and new currencies would come to an end on June 30, 2013 and after July 1, 2013 the old currency would not be accepted as legal tender.
Mr Mayondi, however, said although the old currency would not be used for trading purposes after July 1, it would still be exchanged from commercial banks and designated agencies such as Zampost up to June 30, 2014.
From July 1, 2014 up to December 2015, the old currency would only be exchanged at the Bank of Zambia in Lusaka and Ndola, respectively.
Mr Mayondi advised the public not to panic over the withdrawal of the old Kwacha notes because the exercise would go on in phases until December 31 2015.
He said the general public should be aware that in accordance with the technical guidelines as published during the run-up to the launch of the release of the rebased currency, the bank had announced that the exchange of the old currency for rebased money would be done in various stages.
Mr Mayondi said there would be enough time to enable every citizen in the country to be able to exchange their money without feeling disenfranchised in any way.
He said as far as the Central Bank was concerned, with all the time that had been accorded for citizens to exchange their old currency for the rebased one, there was no plausible reason for an extension for the use of the old Kwacha.
He said there had been very few challenges during the exercise, most of which had been dealt with in conjunction with various law-enforcement agencies, major players in the financial sector and the general public at large.