BoZ to save K17bn from plastic bank notes
 

The Times of Zambia (Ndola)

04.07.03

Times Reporter

THE Bank of Zambia (BOZ) will save K17 billion in the next five years from the newly-introduced K1,000 and K500 polymer notes.

BOZ director of banking, currency and payment systems Morris Mulomba said in Ndola yesterday there was an expected saving of K17 billion in re-order costs.

Mr Mulomba said a total of K12 billion would be saved on the K1,000 notes while K5 billion for the K500 notes in the next five years, respectively.

He said there were several benefits from manufacturing notes using polymer materials as there would be a reduction in the labour costs as fewer notes would be returned to the BOZ for processing.

Mr Mulomba, who was briefing journalist at the BOZ stand at this year's Zambia International Trade Fair (ZITF), said the notes had an added advantage in the reduction of damage.

He said there were also enormous costs involved in disposing off the paper notes which would not be the case with the polymer note.

He, however, said the polymer notes cost twice as much as paper ones but that the substrates lasted at least four times longer than paper notes.

BOZ had decided to print the K1,000 and K500 notes on a unique polypropylene plastic as it was found that the two were the most highly circulated notes.

Mr Mulomba said BOZ would also print the K100 and K50 notes on special paper to enhance durability.

He said the K10,000, K5,000, K1,000 and K500 notes would have special features to make it harder to forge them.

On the introduction of the two high-value notes, Mr Mulomba said K20,000 and K50,000 notes were aimed at regularising the distribution of value across other notes.

Mr Mulomba said at the moment over 94 per cent of the currency in circulation was concentrated in the K5,000 and K10,000.

In order to redress the imbalance in the concentration of value, BOZ introduced the two high-value notes.

He said the notes would be officially launched in September this year.

And a senior inspector in bank supervision at BOZ has said there is need for concerted efforts in the region to curb the rampant reports of money laundering.

Eustus Mainza said there was also need for all the bodies in the country that were directly linked in the fight against the illegal act to closely work together.

Mr Mainza said the Drug Enforcement Commission (DEC), BOZ, Zambia Police, Zambia Revenue Authority (ZRA) and the ministry of Finance should work together and strengthen their relationship.

He urged commercial banks to be vigilant and report people they suspected had money which they dubiously acquired to the anti-laundering money authorities.

He said banks should not expose themselves to launderers as it had negative repercussions on both the banks and economy.

Mr Mainza said there was also need to sensitise the public on the effects and aspects of money laundering.

"There is need for the people to understand the subject so that when they suspect anyone they could report the matter to the relevant authorities.