Cash handling

15.03.04

The Bank of Zambia has received some queries from members of the public about the K500 and K1, 000 polymer banknotes. In particular, concerns have been raised about the apparent “fading off” of some features on the two polymer notes.

The Bank of Zambia would like to advise members of the public that all banknotes, paper and polymer notes alike, eventually wear off and are removed from circulation. Paper notes, being porous, usually wear off through a variety of methods, such as, accumulation of dirt, dust and liquid substances and through normal handling, however caused. Polymer notes, on the other hand, are non-porous and thus do not absorb dirt, dust and liquids. Importantly, polymer notes do not easily tear through normal handling. However, being non-porous, the inks on the notes usually degrade and fade off much more quickly than the polymer substrate itself. The eventual loss of some features of a circulating polymer note is thus expected and normal for this type of banknotes. Such notes, are still legal tender and members of the public are therefore advised to use these notes in their daily transactions. As is the case for paper notes, should any member of the public feel that the features on any polymer note are severely distorted or faded and require replacement notes, they should take such a note(s) to the Bank of Zambia or any registered commercial bank for replacement. In general, when polymer notes reach a certain level of degradation, they are replaced with new ones just as paper notes are replaced with new ones when they get soiled or mutilated.

Statistically, it may be noted that the Bank of Zambia has to date issued a total of 15.3 million pieces of polymer notes of which only 9,500 (or 0.06%) have been withdrawn from circulation for various reasons, including wearing out and mutilation. This withdrawal rate is much less than paper based K500 and K1, 000 when they were in circulation. A significant number of the polymer notes that the Bank has withdrawn from circulation appear to have been damaged by deliberate rubbing or mutilation. In this regard, the Bank of Zambia wishes to advise members of the public to desist from experimenting with banknotes. Such acts are not only costly to the nation, but are also illegal. Anyone wilfully mutilating banknotes can, on conviction, be fined or imprisoned. Members of the public are therefore advised to report to the Zambia Police Service or the Bank of Zambia anyone found mutilating banknotes.

If in doubt or for further clarification, please contact the undersigned:

Kabinga J Pande

Head of Public Relations

Bank of Zambia

P O Box 30080

LUSAKA

Tel: (01) 228888 Fax: 221764

Email: kpande@boz.zm or pr@boz.zm