BoZ works on bank note distribution
 

allafrica.com
21.07.11

By Shamaoma Musonda
 
Solwezi — The Bank of Zambia (BoZ) is undertaking a study to restructure the bank notes distribution, a move that might see the re-introduction of coins and coming of notes higher the K50,000.

 
BoZ director of banking, currency and payment system Edna Mudenda said the central bank was looking at various macro-economic factors so that the changes did not affect the financial system of the country.
 
Ms Mudenda, who was speaking during the 2011 BoZ media seminar in at the Solwezi Royal Hotel, said the study being undertaken by bank directors was in its infancy.
 
"We are undertaking a study to restructure the currency (bank notes) structure of the country. We are looking at may be bringing back coins and introducing denominations higher than the K50,000," Ms Mudenda said.
 
She said the central bank was looking at having coins to replace the K500 and K1,000 polymer notes which were introduced on the financial system more than five years ago
 
The study team is also looking at possibilities of raising the value note of the polymer and having a higher denomination.She said the study team had a responsibility of making sure that should the changes take place, they would not affect the inflation levels and various macro-economic conditions.
 
Ms Mudenda said that minting coins was cheaper that ordering re-prints of paper or polymer notes.With counterfeiting, it was important that the bank strives to reduce the vice by raising the levels so that people could not succeed in using fake notes.Asked when the new measures would take effect, Ms Mudenda said it could be next year.
 
She termed as exciting the present economic situation, saying the central bank would strive to maintain a stable and effective financial system in Zambia.