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Financial analyst, Kelvin Chisanga, has called on the Bank of Zambia (BoZ) to prioritise replacing soiled and torn banknotes in circulation to improve the quality of money transactions.
Chisanga’s remarks come amid growing concerns from stakeholders about the poor state of lower-denomination notes, particularly the K20, K10, K5, and K2 bills, which are increasingly soiled and damaged.
In a commentary shared on his official Facebook page on Sunday, Chisanga urged the central bank to take swift action to address the issue, emphasizing the need for adjustments in the domestic currency’s quality.
Read more:group-calls-on-bank-of-zambia-to-replace-torn-currency-notes
“It’s sad to see the money notes we are handling. What we are seeing around are many soiled notes that are unfit for circulation,” Chisanga said.
He pointed out that the systems of supply and circulation needed to work in tandem with regulatory frameworks to ensure better money quality.
“The central bank authorities should focus on addressing the issue of soiled notes in circulation, particularly the smaller denominations that urgently need replenishing,” he added.
Chisanga also noted that Zambia had not printed new banknotes in over two and a half years, with the last printing occurring in 2021.
He argued that this gap might contribute to challenges in money supply, which could have implications for monetary policy effectiveness.
This situation has negatively impacted businesses, including supermarkets and chain stores, where small notes are crucial for facilitating transactions.
Chisanga called on BoZ to take immediate action, warning that continued neglect could disrupt economic activities and undermine public confidence in the national currency.
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