BANK of ZAMBIA

OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

December 4, 2012

CB Circular No: 22/2012

To : All Commercial Banks

ISSUANCE OF GUIDELINES FOR HANDLING COINS AND BANKNOTES

In January, 2012, the Minister of Finance, Honourable Alexander Chikwanda announced the Government’s decision to approve the Bank of Zambia (BOZ) recommendation to rebase the Zambian Kwacha by dividing the national currency by 1000 units. Subsequently, the Bank of Zambia has communicated the denominations of both banknotes and coins that will make up the new family of the Zambian currency, as follows:

1. Banknotes – K100, K50, K20, K10, K5 and K2 denominations.
2. Coins – K1, 50, 10 and 5 Ngwee denominations.

Given the fact that the market has not handled coins for a long time, the BOZ has prepared Guidelines that deal with management of coins with a view of helping market participants acquire the right equipment and packaging material for coins.

Further, the guidelines stipulate processing fees that will accrue to commercial banks that will be depositing “fit” coins at the Bank of Zambia. It should be noted that the fees will not apply to deposits of “old” coins that the Bank will be withdrawing from circulation.

Kindly find attached hereto, the guidelines for handling the Zambian Coins.

Should you require any further clarifications, please do not hesitate to contact Banking Currency and Payment Systems Department.

P.P. Bwalya K. E. Ng’andu (Dr)
DEPUTY GOVERNOR - OPERATIONS

Cc: Governor
Deputy Governor – Administration