New currency introduction: frequently asked questions and answers

In 2003, prior to the release of the new polymer bank notes, the BoZ published the following information (FAQ) on their web site (only the portion that is related to polymer notes is shown):

How serious is the incidence of counterfeiting of Zambian banknotes?

Happily, the incidence of counterfeiting on the current denominations has been very low. The Bank of Zambia however, is aware of the need to continuously improve its defences against counterfeiting actions and in this regard decided to upgrade all notes against possible future counterfeiting actions.

What is a polymer banknote? 

A polymer banknote is created from a substrate which starts as a large roll of specialised clear plastic film, developed specifically to suit the requirements of banknotes. This film is produced by a reputable security company using unique, patented technology on equipment that is produced in-house; neither the production equipment nor the resultant films are available commercially. The complete production process is very complex but, in simple terms, the clear film is processed through a number of steps to create the substrate which is then printed on; it goes through the following processes:

• opacifying ‑ multiple layers of specialised coatings (usually white but they can all be different if desired) are applied to each side of the clear film, except for an area(s) which is deliberately left clear, or areas where the opacifying coatings are printed on one side of the note only; at this stage, a range of other options exists, such as images and text can be printed in the clear window. Shadow images (polymer equivalents of the watermark) are created, and covert security features incorporated using a range of sophisticated technologies;

• sheeting - the opacified substrate is cut into large sheets suitable for feeding into standard banknote printing presses;

• printing - traditional offset, intaglio and letterpress printing machines and inks are used to print the notes;  and

• overcoating - the notes are coated with two coats of a specialised varnish which helps to protect the printing, keep the notes clean and also add some texture to the feel.

More sophistication can be added by including special security features at different stages, especially when used in conjunction with the clear window.

Why are we introducing this new type of banknote?

The polymer K500 and K1,000 banknotes use the very latest world developments in banknote production technology. Its use in Zambia places us at the forefront of banknote sophistication around the world and offers our country many important benefits. 

What sort of benefits does the new note offer?

For example, use of this new type of banknote will improve the quality of notes in circulation and, importantly, save the country money. Because the new notes stay so clean and are so much more durable than paper notes, they will not wear out as quickly and therefore not require replacement so frequently.           

Additionally, this new type of note is more environmentally friendly. When the notes do eventually wear out, they can be recycled into other plastic products. This is arguably a better end outcome than the current disposal methods for paper notes. 

Where does the technology come from?

The technology was developed over a long period in Australia, where all the banknotes are made from this material. It has been a very successful move for Australia, and many other countries are now moving to have their notes printed on polymer.

Where are the polymer notes being printed?

The polymer notes are being printed in Ottawa, Canada, by Canadian Bank Note (CBN). 

How many other countries are using this technology?

Zambia will be the 22nd country to issue polymer banknotes. 

Will other denominations also be printed on polymer?

We want to assess this first release properly before deciding about other denominations. We expect, however, that if our experience is similar to other countries, there will be clear and obvious benefits from using this technology. 

Will the existing paper notes be withdrawn immediately?

No, they will continue to circulate until they wear out. 

Is it hard to counterfeit polymer notes?

Polymer banknotes offer the opportunity to introduce very sophisticated security features that make the notes extremely difficult to counterfeit. On these notes, we have chosen at this stage to have security features that generally are fairly similar to those that are on the paper notes of the same denominations and that people are used to.  However, one of the new features is the transparent window on the notes where you can see straight through it. That, in itself, provides good protection against counterfeiting.

Are the notes difficult for people to handle?

The new polymer notes are handled slightly differently from paper notes.  Because they are on polymer, they tend to be harder to fold, and once folded they tend to be harder to flatten out again. Because of this, we recommend that wherever possible, the notes be carried or stored flat. If they do need to be flattened out, the quickest way is to “scrunch” them first in your hand and then flatten them out. Alternatively, a light pressure for a few minutes will make them flat.           

How resistant are they to tearing?

It is much harder to start a tear on these notes. That is one reason they last much longer than paper notes. However once a tear is started, it will continue very easily. For this reason we suggest that people do not staple these notes as it could result in them being torn more easily.  Indeed, stapling is a practice that causes wear on every type of banknote, and we would discourage it for both paper and polymer notes.

Are they difficult to count?

It is a matter of getting used to them. There is no “best method” to count them, and we would encourage people to use their existing method or experiment until they find the method of counting that suits them best. Such problems have been found to be quite minor in other countries using this technology. 

Where can one get the plastic that the notes are printed on?

The polymer used in these banknotes is not a common or standard plastic that can be obtained commercially. It is a unique material in terms of thickness, behaviour and clarity, and enables a much higher quality of print and the inclusion of unique security features, such as the transparent window. 

Is it true that if the notes are left in a warm place they shrivel up? And is it true that they will shrink in an oven?

It takes temperatures well in excess of 120ºC, well above temperatures encountered in normal use, to cause polymer notes to shrivel up.  If people use a blow torch there will be problems, as there would be with paper notes. Regarding the shrinking of polymer notes when put in an oven, yes, polymer notes will shrink, but why put them there? 

How are old polymer notes recycled?

In a number of other countries, notes withdrawn from circulation are shredded; the shreds are melted down and turned into other plastic goods, such as flower pots, compost bins, plastic piping etc. 

Do polymer notes work in Automatic Teller Machines?

Yes, in fact they work better than paper notes. But these denominations (K1,000 and K500) are not used in ATM’s.