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The Policy Monitoring and Research Centre (PMRC) has endorsed the introduction of K500 and K200 banknotes, stating that their well-managed rollout can reinforce the Kwacha’s resilience and support long-term economic stability.
PMRC described the move as a bold and necessary monetary policy decision that would enhance transaction efficiency and modernise Zambia’s financial sector.
In a statement on Thursday, PMRC Executive Director, Sydney Mwamba, noted that the new banknotes would help maintain financial stability by addressing the rising volume of high-value transactions.
“The Bank of Zambia has announced the introduction of new banknotes, including higher denominations of K200 and K500. This move goes beyond a simple currency update—it is a strategic effort to streamline transactions and fortify the Kwacha’s role in the economy,” Mwamba said.
He explained that the K100 note currently accounts for over 70 percent of total currency in circulation—well above the global benchmark of 60 percent—making additional high-value denominations necessary.
“The introduction of higher-value banknotes reflects a broader commitment to strengthening monetary stability. It aims to bolster confidence among investors, businesses, and the general public, even amid external shocks such as droughts and market fluctuations,” he added.
Mwamba emphasised that modernising Zambia’s currency aligned with global best practices, ensuring the Kwacha remained secure, user-friendly, and adaptable to economic needs.
To ensure a smooth transition, he urged authorities to conduct robust public awareness campaigns, highlighting new security features and the distinction between high-value denominations and inflationary pressures.
He also recommended extensive community engagement through radio programmes, social media, and in-person workshops to reach remote areas.
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