MONETARY AND BANKING SYSTEM
Monetary System
| Currency: |
Zambian Kwacha, ZMK100 ngwee = ZMK 1 |
| Denominations: |
Notes K20, K50, K100, K500
Coins 25n, 50n, K1, K5, K10 |
The Zambian Kwacha floats freely against major world currencies including the South African
Rand, the IMF's Special Drawing Rights (SDR), the PTA's Unit of Account (UAPTA) and the
EEC's European Currency Unit, the ECU.
Banking System
The banking system is liberalised enabling commercial banks to charge market determined,
competitive interest and exchange rates.
Types of Banks
The Development Bank of Zambia is the only one of its kind providing long term
development finance. Citi Bank is a whole sale commercial bank specialising mostly in
large scale firms and projects. Lima Bank concentrates on agricultural financing especially
seasonal and short term loans.
Cavmont and the First Merchant Banks are some of the banks providing merchant banking
services.
In 1992, the government allowed the opening of Bureau de change to deal in foreign
exchange. Several small bureaus are dealing only in three (3) currencies the British Pound,
the US Dollar and the South African Rand but bureaus established by major banks transact in
many other currencies as well.
Exchange Control
With the abolition of the Exchange Control Act in January, 1994, exchange controls have been minimised and apply only to a limited number of foreign currency transactions/commercial bank activities.
Anyone entering Zambia is required to declare foreign currency imports equivalent to US$5,000 and above for statistical purposes only.
For more information get a copy of the Bank of Zambia (Foreign Currency) Regulations 1994 from Bank of Zambia or any commercial bank and Statutory Instrument Number 44 of March, 4th 1994 obtainable from Government Printers.
This information is provided by the Export board of Zambia, © EBZ, 1995, 96
Email address: ebzint@zamnet.zm