Regulatory Alerts2003-01-01
Recall of Polymer Notes in Circulation
The Bank of Zambia has ordered the immediate withdrawal of approximately 5,000 K500 and K1,000 polymer notes from circulation due to defective serial numbers that rub off easily. Commercial banks must retain these notes as legal tender upon customer deposit but are prohibited from reissuing them, instead forwarding all affected currency to the central bank for exchange into equivalent paper notes. The central bank will issue further guidance regarding the release of replacement polymer notes once production issues are resolved.
# BANK OF ZAMBIA
## OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
October 8, 2003
**CB Circular No: 15/2003**
**To**: All Commercial Banks
## RECALL OF POLYMER NOTES IN CIRCULATION
As you may be aware, shortly after the official launch of the new bank notes on Friday evening, September 26, 2003, the K500 and K1,000 polymer notes were found to have a problem with the serial numbers which easily rubbed off with a moist finger or thumb. Consequently, the Bank of Zambia has decided to withdraw from circulation the polymer notes that were issued.
About 5,000 pieces of both K500 and K1,000 polymer notes with a total value not exceeding K4.5 million were issued. The said notes remain legal tender and should be accepted as customers’ deposits, but should not be reissued in circulation. You are required to forward all such notes to the Bank of Zambia as and when customers deposit these with yourselves. These notes shall then be exchanged for paper notes of equal value at the Bank of Zambia.
Kindly be informed that you will be advised when the new polymer notes will be in circulation.
We look forward to your usual cooperation and support in this matter.
Denny H Kalyalya (Dr)
**DEPUTY GOVERNOR – OPERATIONS**
Cc Governor
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Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: +260-1-226844 Fax: +260-1- 237070 Email: dkalyaly@boz.zm Web: http://www.boz.zm/
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