Digital transactions intact, assures Musokotwane
By Tony Nkhoma
WE HAVE not abandoned the utilisation of financial digital platforms, Minister of Finance and National Planning Dr Situmbeko Musokotwane has said.
Following government’s plans to introduce the new currency with larger denominations of K200 and K500, various key stakeholders raised concerns that this could increase cash-based transactions, reducing reliance on formal banking systems and complicating liquidity management for the central bank.
Dr Musokotwane said government had not lost sight of implementing measures to reduce cash transactions and move towards the utilisation of digital platforms.
He implored financial service providers to continue being vigilant in encouraging their customers to maximise the use of digital platforms for transactions for the benefit of the Zambian people.
“This measure reduces the cost of doing business as well as reducing inherited risks such as being robbed of cash as well as tracing where the money is going to avoid illicit money flows,”’ Dr Musokotwane said.
Speaking during the launch of the new family of the Zambian currency, he counselled members of the public to pay special attention to warnings against fraudsters during the use of the new family of currency.
Dr Musokotwane urged the public to be alert with fraudsters who might wish to prey on uninformed members of the public as the new currency was exchanged.
He said the new currency family was not just a medium of exchange but a celebration of the heritage, culture and unity as the people of Zambia.
Dr Musokotwane said a statutory instrument had been issued, which set forth a 12-month exchange period beginning on March 31.
“During this period, both the old and new banknotes will circulate side by side as legal tender. The existing coins in the denomination of K1, 50n, 10n and 5n, on the other hand, will remain legal tender even after the March 31, 2026 deadline,” Dr Musokotwane said.
He said the Bank of Zambia would be issuing additional information on the process of exchanging the old currency with the new currency through the various media channels.
