Zambia takes three zeros off notes
Zambia's Finance minister Alexander Chikwanda launched the new Kwacha notes assuring the citizens that the move to rebase the currency was meant to address previous bouts of depreciation.
What was 1,000 kwacha will now be one kwacha.
"The rebasing of the Kwacha was aimed at addressing the inflationary spirals which over the years caused the currency to depreciate to intolerable levels which were not cost-neutral in terms of the economy," Chikwanda said.
Zambia, Africa's largest producer of copper, has in the past years seen inflation fall. In 2009 inflation was 9.9%, higher than the 7.2% in 2011.
Until now 10,000 kwacha was worth roughly two dollars.
"The decision to rebase the currency was further premised on government's conviction to restore the intrinsic value of our currency as a medium of exchange," he added.
The new currency will run side by side with old Kwacha notes until June this year.
"Although the old currency will cease to be legal tender on 30 June, it will be available for exchange at the Bank of Zambia and commercial banks for a period of 36 months," said Chikwanda.
"I therefore urge the public not to panic as they change their old currency for the rebased currency," Chikwanda added.
Source: AFP via I-Net Bridge
Source: I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
