Zambian kwacha

Zambian kwacha
ISO 4217 code	ZMK
Central bank	Bank of Zambia
Website	www.boz.zm
User(s)	Zambia
Inflation	13.5%
Source	The World Factbook, 2009 est.
Subunit
1/100	ngwee
Symbol	ZK
Banknotes
Freq. used	50, 100, 500, 1,000, 5,000, 10,000, 20,000, 50,000 kwacha
Rarely used	20 kwacha

The kwacha (ISO 4217 code: ZMK) is the currency of Zambia. It is subdivided into 100 ngwee.

Etymology

The name derives from the Nyanja and Bemba word for "dawn", alluding to the Zambian nationalist slogan of a "new dawn of freedom". The name ngwee translates as "bright" in the Nyanja language.

History

In 1968, the kwacha, a decimal type currency replaced the short lived pound at a rate of 2 kwacha = 1 pound (10 shillings = 1 kwacha). During the Kenneth Kaunda regime the value of the currency was fixed at a rate of approximately 1.2 kwacha to 1 USD. During the the late eighties and early nineties a severe economic crisis emerged stemming from poor government oversight and overspending. As a result the currency suffered from high inflation throughout the 1990's and 2000's. By 2006, it took 4,800 kwacha to buy one U.S. Dollar.

As of March 8, 2011, 1 US dollar was equal to 4,715 kwacha.[1]

As of January 23, 2012, 1 Us dollar was equal to 5,120 kwacha [2]

2012 Rebasement

On January 23rd, 2012, Finance Minister Alexander Chikwanda announced that Zambia would rebase the kwacha currency by lopping off three zeros, a move that should make it easier for foreign investors to participate in the economy.

“The rebasing had to be done when all the fundamentals like inflation and GDP growth were right and we think they are now right,” Chikwanda said. Currency rebasing usually does not change the exchange value of the currency and is introduced to make commercial calculations easier.

Initial Reaction to the move was positive. Razia Khan, head of Africa research at Standard Chartered commented saying, “tThe rebasing might be kwacha positive,to the extent that it is a continued commitment to low, and stable inflation”.

Coins

5 kwacha in 1992
Coat of arms	Value

In 1968, bronze 1 and 2 ngwee and cupro-nickel 5, 10 and 20 ngwee were introduced. These coins all depicted president Kenneth Kaunda on the obverse and flora and fauna on the reverse. A twelve sided 50 ngwee coin was introduced in 1979 to replace the 50 ngwee note and featured commemorative FAO themes.

(click for image).

In 1982, copper-clad-steel replaced bronze in the 1 and 2 ngwee. These two were struck until 1983, with production of the 5 and 10 ngwee ceasing in 1987 and that of the 20 ngwee in 1988. Nickel-brass 1 kwacha coins were introduced in 1989 and depicted "Bank of Zambia" on the edges. The period of circulation for this coin was brief as inflation rates skyrocketed.

In 1992, a new, smaller coinage was introduced consisting of nickel-plated-steel 25 and 50 ngwee and brass 1, 5 and 10 kwacha. The coins depict the national crest on the obverve and native fauna on the reverse. The coins were issued only one year and then discontinued as the economic crisis dragged on.

All these coins, both from the older and newer series still remain legal tender. However, the value of the metal in the coins is worth more than their irrelevant face value, so they are never seen or used in normal trade. The only place coins might be seen today is when they are sold as souvenirs to tourists.

Banknotes

In 1968, the Bank of Zambia introduced notes for 50 ngwee, 1, 2, 10 and 20 kwacha. 5 kwacha notes were introduced in 1973, the same year that the last 50 ngwee notes were issued. 50 kwacha notes were introduced in 1986, with the 1 kwacha note being replaced by a coin in 1988. 100 and 500 kwacha notes were introduced in 1991, followed by 1000, 5000 and 10,000 kwacha in 1992, when the 5 and 10 kwacha notes were replaced by coins and the 2 kwacha discontinued. In 2003, 20,000 and 50,000 kwacha notes were introduced.

Denomination	Dates
50 ngwee	1968-1973
1 kwacha	1968-1988
2 kwacha	1968-1989
5 kwacha	1973-1989
10 kwacha	1968-1991
20 kwacha	1968-1992
50 kwacha	1986-
100 kwacha	1991-
500 kwacha	1991-
1000 kwacha	1992-
5000 kwacha	1992-
10,000 kwacha	1992-
20,000 kwacha	2003-
50,000 kwacha	2003-

Until 1991, all Zambian banknotes featured a portrait of President Kenneth Kaunda on the obverse. Since 1992, all notes have instead featured a fish eagle on the obverse. Since 1989, all the reverses have featured the Chainbreaker statue. In 2003, Zambia became the first African country to issue polymer banknotes. The 500 and 1000 kwacha are both printed on polymer.

Although the 20 kwacha note is still in circulation, such is the rarity of this note that most major retailers will round prices up to the nearest 50 kwacha when calculating a total. Most items in major supermarkets are displayed using 20 kwacha in the value (e.g., 1980 kwacha).

Current ZMK exchange rates
From Google Finance:	AUD CAD CHF EUR GBP HKD JPY USD ZAR
From Yahoo! Finance:	AUD CAD CHF EUR GBP HKD JPY USD ZAR
From OzForex:	AUD CAD CHF EUR GBP HKD JPY USD ZAR
From XE.com:	AUD CAD CHF EUR GBP HKD JPY USD ZAR
From OANDA.com:	AUD CAD CHF EUR GBP HKD JPY USD ZAR

See also

• Kwacha
• Malawian kwacha
• Economy of Zambia

Notes

http://www.lusakatimes.com/2012/01/23/zambia-takes-libyaowned-zamtel-knocks-zeros-kwacha/ http://www.ukzambians.co.uk/home/2012/01/23/cabinet-approves-kwacha-rebasing/ http://www.lusakatimes.com/2012/01/23/bank-zambia-hopes-introduction-kwacha-notes-6-months/

References

• Krause, Chester L., and Clifford Mishler (1991). Standard Catalog of World Coins: 1801–1991 (18th ed. ed.). Krause Publications. ISBN 0873411501. 
• Pick, Albert (1994). Standard Catalog of World Paper Money: General Issues. Colin R. Bruce II and Neil Shafer (editors) (7th ed.). Krause Publications. ISBN 0-87341-207-9. 

External links

Preceded by: Zambian pound Ratio: 2 kwacha = 1 pound

Currency of Zambia 1968 –

Succeeded by: Current