The Bank of Zambia (BoZ) has announced that almost half of the country’s old banknotes have now been withdrawn from circulation as part of its ongoing currency replacement programme.
Speaking during a Facebook broadcast, Mr. Patrick Phiri, Manager for Currency Front Office Operations at BoZ, said that by the end of August, about 48% of the old series had been taken out of the financial system. This leaves about 52% of the old notes still in circulation.
He revealed that the central bank has so far issued around K14 billion of the new heritage series, while approximately K8 billion of the old notes are still being used by the public.
Mr. Phiri further explained that the withdrawal exercise will speed up in the coming weeks. The withdrawal rate, which currently stands at 40%, is expected to rise to 80% once the old K50 and K100 notes are officially phased out. These high-denomination notes account for a significant share of currency transactions in Zambia.
“The process is moving steadily. As of the end of August, we had withdrawn approximately 48% of the old series. We still have about 52% out there,” Mr. Phiri stated.
The central bank launched the new heritage series banknotes and coins earlier this year to enhance security features, improve durability, and celebrate Zambia’s cultural identity. The redesigned notes are expected to help reduce cases of counterfeiting and strengthen confidence in the local currency.
The Bank of Zambia has been urging citizens to embrace the transition by depositing old notes into the banking system and making use of digital payment channels. Commercial banks and financial institutions across the country have been directed to support the process by ensuring easy exchange for the public.
Economists say the successful completion of the exercise will simplify cash transactions and make it easier for the central bank to monitor money supply. The move also reflects BoZ’s efforts to modernise the currency system in line with international standards.
Meanwhile, the central bank has assured citizens that both old and new notes remain legal tender until the phase-out process is complete. However, members of the public are encouraged to switch early to avoid last-minute inconveniences.
The transition is expected to gather pace from September, with the full replacement of old notes targeted for completion in the coming months.
