By Arnel Chitundu and Fulman Mukobeko
AFRICA’S Democratic and Economic Development Organisation-Zambia Now (ADEDO-ZAMUCANO) vice president Daniel Nyati has said the manner in which the bank notes are fading is worrying.
But Prominent Economist Yusuf Dodia said there is no currency be it a dollar or pound that can last forever.
Speaking in an interview, Mr. Nyati said K2 notes and K5 notes were getting spoiled at a very fast rate.
“As ADEDO-ZAMUCANO, we are concerned at the way the bank notes are fading, particularly the K2 notes. They don’t stay so long. In no time, the note would have faded,” Mr. Nyati said.
He said once a bank note became spoiled, it gave a burden on the Central Bank because from time to time, it needed to replace damaged notes with new ones.
“Every time that money goes back to the Central Bank, it goes as spoiled notes and the Bank of Zambia is mandated not to push back those notes into circulation but rather to produce new notes and that is coming at a cost,” he said.
He emphasized the need for the Bank of Zambia to consider giving strength to the Bank notes in terms of paper and material being used.
“From time to time, you have seen that the Zambian Kwacha has lost value. Therefore, the lower value notes are the ones that are in circulation. These are the monies people are using. The moment they fade, we are depriving Zambians the little money that are supposed to be in their pockets,” he said.
He added: ” We want to call upon the Central Bank to consider printing the K2 notes with strong material so that this money can last longer the way the K1 notes last. It is just that K1 coins are not secure because if you drop one it is difficult to pick it. If you are driving, you lose a lot of coins in the vehicle.”
But speaking in a separate interview, Mr. Dodia said currencies never last forever and that there was a department at the Bank of Zambia that took care of currency replacement.
He said the Bank of Zambia had a facility where Commercial Banks sent damaged notes to the Central Bank for replacement, saying those notes that are worn-out are replaced.
“Well, currencies never last long. The Bank of Zambia has a currency department that takes care of this. When the K2, K5, K20 notes or whatever notes are fading, the Bank of Zambia removes them and those damaged notes are replaced with new ones.
“I guess the big challenge which is there is, is Bank of Zambia buying new currencies so that they replace them with those that are damaged? If they are not doing so, then this is what is causing a problem where you are seeing a lot of damaged notes in circulation,” he said.
He said the Bank of Zambia and the Ministry of Finance should be asked why there are so many worn-out notes in circulation.
“If you start making coins of K2, K5, they can last very long but how do you carry them in the pocket? You cannot have a pocket full of coins where you are looking as if you are carrying stones. It is only a lower note that you make into coins but currencies that have higher value, you can’t do it” he said.
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