Tuesday, December 17, 2024

Bank of Zambia sets 1st January 2013 for Kwacha rebasing

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Kwacha: Zambia’s legal tender

The Bank of Zambia has set 1st January,2013 as the changeover date for the rebased currency.

Bank of Zambia Head of Public Relations Kanguya Mayondi in a statement released to QFM News today that consequently the rebased Kwacha will become legal tender on 1st January 2013 and accordingly will be accepted as a medium of exchange in Zambia.

Mr Mayondi says the Central Bank has since designated 1st January,2013 to 30th June, 2013 as the transition period during which both the old and the rebased currencies will circulate simultaneously.

He explains that at the end of the transition period, the simultaneous circulation of the currencies will cease and the old currency will not be accepted for ordinary transactions.

He however says financial institutions will continue to exchange the old currency for the rebased currency from both clients and members of the public at no fee.

Mr Mayondi adds that the exchange of the old currency for the rebased currency at financial institutions is expected to continue for 18 months until 31st December,2014.

He says all business entities are required to commence preparations for the adaptation of all systems and infrastructure, accounting packages, related software and infrastructure which must be completed in readiness for the changeover date of 1st January,2013.

Mr Mayondi further states that with effect from 1st January 2013, all financial institutions will be required to make payments to customers in the rebased currency, convert all bank balances to the rebased currency, and ensures that all ATM dispense rebased currency.

He adds that all amounts shown on receipts and points of sale machines will be expressed in the rebased currency utilizing the new currency code ZMW, and that all company balance sheet items as at close of business on 31st December 2012 will be converted to the rebased currency.

He also states that all data maintained on accounting and other processing packages will be expressed in the rebased currency with the new currency code ZMW,while all financial and supporting documentation for businesses will be prepared in the rebased currency and amounts shown on debit instruments, such as cheques and promissory notes issued by 31st December,2012 for settlement after this date will be converted to the rebased currency.

QFM

53 COMMENTS

  1. I have always said it, the rebasing of the kwacha is a political gimmick by Sata, Winter, ABC, GBM, cronies and their minions to rob the govt treasury of money. A third of the newly printed money will go straight to Statehouse for themselves and PF. Never trust a mouse to guard over a bag of groundnuts!

  2. #1, the rebased currency will have code ZMW instead of ZMK because ZMK will continue to be in circulation until 31st December 2014 representing the old currency. Hence, the different codes to differentiate the two currencies that will be legal tender side by side…

    • Would this mean that after 2014 when ZMK will no longer exist ZMW will change to ZMK or will ZMW be permanent as a code. By the way South African rand is ZAR what’s the explanation for that?

    • Trigo: The ISO 4217 code is ZAR, from Dutch Zuid-Afrikaanse rand. (South African rand). However, the ISO code does not need to be an acronym but something close so that at the mention of it, someone known which currency it refers to. As stated, we cant use ZMK for new currency. BoZ was free to think of any letter in place of K and they picked on W, with or without meaning. If it were you, probalbly Q.

    • W is the letter after K in kwacha and hence the central bank found it fit to replace the K in ZMK with W. if it so happens the kwacha is rebased in future again we will move to the A. We should also take note that these codes are issued and certified by ISO.:)>-

  3. Does Sata even understand the economics of rebasing or is he still thinking simple economics like his fellow PF kaponyas trading in the streets of Lusaka?

  4. and the bullsh*t continues… Make up your minds ba chimbwi. ZMW??? Sounds like a tribute to Robert Mugabe to me. :-?

  5. @#4.Mayo Mpapa….you are missing the point….My goodness did you pass your Special paper 1 or 2? the question is if..zmk is to zambian Kwacha….then ZMW is to..?

  6. This is another waste of scarce public resources. What does ZMW stands for I thought it would have been much better to use ZMK/ZK

  7. Just take time and do a good job, don’t listen to empty ranting especially from calculator boy Hakainde Economic Terrorist. This man owes Zambians an explanation on the money for privatization.

  8. Come 1 st January 2013, there will another flip.Were we not told that this will be done in June 2012?Ni flip flop chabe, stop concentrating on non issues and get down to fixing the economy ba CNP.

  9. Would this mean that after 2014 when ZMK will no longer exist ZMW will change to ZMK or will ZMW be permanent as a code. By the way South African rand is ZAR what’s the explanation for that?…….

    • Zuid Africa Rand (Afrikaans). ISO is responsible for allocating those codes because they are meant to differentiate all the currencies, what they mean it something you should google.I wouldn’t imagine BOZ crafting things without meaning.

  10. Does it mean if South Africa is lost in the forest we should also follow suit? Absolutely no…..Ine indalama shandi bekachitako rebase mu account yandi pantu tukapusana naimwe ba shetani, ala imwe……….ZMW uko kwine not mu account yandi…….

    • Guys this is very wrong you are correcting number 22 which was good but wrongly. check my response on 20.2; Much as the Afrikaans language has it root from old Dutch is much different from the modern day Dutch.

  11. @#9, dickson Pussies; W in ZM means “waiting” or “in waiting”. The rebased currency is waiting to take over ZMK at the end of the transition period, which is Dec 2014. So, you’re the one who may not have passed special paper 1, lol!

  12. political or not,zmw,zmk,nrk, i dont care.as long as it.’s positive for mother zambia.if you cant see the light in rebasing, you ve the right to ask BoZ for more information.dont just talk for the seek of opps.

  13. The symbol for the current currency is “K”. However, during the transition period, there will be need to introduce an interim symbol for the rebased currency.
    The symbol that will be used for the rebased currency during the transition period will be “KR”.
    After the transition period, the symbol will revert to “K”.

  14. yu zambian douchebags, stop arguing on zmw zmk codes, tht dzn’t matter at all, what matters is the value of the money and what convenience it will bring to the pple. instead of sigh of relief tht yu not gonna go around town with convoy of zeros yu busy pondering on the codes, silly people.

  15. thanks kopala i think you have opened my mind i also was wondering what this w is all about. at least i have an idea am enjoying the rebased money.

  16. i think zmw should not really stand for something, i mean the ugandan shilling is ugx so zmw should not puzzle you guys too much.

  17. The ISO Code of the Kwacha

    The International Standardization Organization (ISO) provides international standard codes (ISO 4217) to identify every currency in the international market. The ISO Currency code prescribes a three letter structure.

    The current currency code for Zambia is ‘ZMK’, where the letters ‘ZM’ stand for the country code for Zambia and ‘K’ stands for, ‘Kwacha’.

    Any modification to a currency requires a permanent change to its ISO code. Therefore, effective 1st January 2013, the new alphabetic ISO Code for the Zambian currency will be ZMW, where the letter ‘W’ represents the
    rebased Kwacha. The letter ‘W’ being the second character in the Zambian currency name ‘KWACHA’.

    Page 7 of the Technical Guide Lines of Currency Rebasing by BOZ – http://www.boz

  18. Just want to know if this new currecy is effective on security listed on the Zambia stock exchange ‘cos we learnt it will be effective on the 1st of January 2013.

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