from ARNOLD MULENGA in Lusaka, Zambia
Zambia Bureau
LUSAKA, (CAJ News) – THERE are mixed feelings over the introduction of new denominations of the Kwacha currency in Zambia.
Some opposition parties argue this will fuel inflation while some argue the move would stabilise the economy.
The Bank of Zambia has introduced the notes, ranging from K10 (US$0,36) to K500 ($17,94). They will be launched on March 31.
The apex bank said the notes celebrated Zambia’s cultural heritage and a commitment to providing currency that is secure and well-suited for everyday transactions.
These banknotes celebrate Zambia’s cultural heritage and economic pillars, featuring the African Fish Eagle, endemic flowers, key waterfalls, and the Big Five animals. In addition, advanced security features such as watermarks, color-shifting ink, and raised textures aim to combat counterfeiting.
“However, beneath this veneer of progress lies a deeper concern: the potential adverse economic impacts of introducing higher denominations in Zambia’s current economic environment,” said Emmanuel Mwamba, head of Information and Publicity in the main opposition Patriotic Front (PF).
“Zambia’s economy remains under strain due to persistent fiscal deficits, high inflation and a depreciating Kwacha. The introduction of higher denominations in this environment risks exacerbating existing vulnerabilities.”
Inflation is hovering around 20 percent in recent years.
The other opposition, Party of National Unity and Progress (PNUP), dismissed notions of hyper-inflation over the new denominations.
Highvie Hamududu, its president, said, “The change of currency notes and coins doesn’t cause inflation.”
“Dealing with inflation is a long-term process by addressing underlying economic factors,” Hamudud added.
Meanwhile, the central bank apologized for the poor state of the banknotes in circulation.
“With the introduction of the new currency, this should soon be a thing of the past,” Governor Denny Kalyalya assured.
– CAJ News