Hong Kong, Jan. 23 – Zambian authorities have announced intentions to redenominate the local currency – Kwacha – by dividing the current notes by 1000 and knocking off three zeros from all the denominations.
This means that K1, 000 will be K1, K5, 000 will be K5 while K50, 000 will become K50.
Finance Minister, Alexander Chikwanda and newly appointed Central Bank Governor, Michael Gondwe announced the redenomination of the Kwacha at a news briefing in Lusaka Monday.
“The rebasing had to be done when all the fundamentals like inflation and GDP growth were right and we think they are now right,” Chikwanda said.
Zimbabwe, Mozambique and Ghana are some of the African countries that once rebased their currencies.
In July 2007, Ghana chopped off four zeros from the Cedi. Instead of having 10,000 Cedis, it now has 1 cedi for 10000.