Kwacha is the currency of Zambia, which is registered in the international registry under the code ISO 4217 and is designated in the international market as ZMW. Each such monetary unit is subdivided into 100 ngwee (ngwee).
Zambian money: what is the name of the unit in the transfer?
The name of this money comes from a word in the language of Nyanja, which means “dawn” in translation. Thus, the name of the country's financial unit alludes to the Zambian nationalist slogan “dawn of a new freedom”. The name "ngwe" is translated as "bright" in the same dialect.
Story
In 1968, kwachi (the decimal type of currency) replaced pounds in the country with a quote of 2 kwach = 1 pound (10 shillings = 1 kwach). During the Kenneth County regime, the value of the currency was fixed at approximately 1.2 kwacha per 1 USD. In 1980-90, a serious economic crisis occurred in the country due to inadequate control by the government and cost overruns. As a result, the Zambian currency suffered from high inflation throughout the years 1990 and 2000. By 2006, the exchange rate had already reached 4,800 kwach for one US dollar.
2013 Reform
On August 22, 2012, the Bank of Zambia issued a press release stating that in the near future national money will be relocated. The date the changes were introduced was January 1, 2013. The new ISO code now looks like ZMW (previously the national currency of Zambia was designated as ZMK). The initial reaction within the country and from the international community to this step was positive.
Financial analysts of the country made statements that relocation and denomination can have a positive effect on Kwachi, primarily, to the extent that stable controlled inflation will be forecasted in the future. Since the beginning of 2013, the new currency of Zambia has been introduced with a quote of 1000 old = 1 new. Until the end of June 2013, the old monetary units remained legal tender along with the new ones.
Coins
In 1968, the running money was bronze coins with the equivalent of 1 and 2 ngwe and cupronickel coins with values of 5, 10 and 20 ngwe. On all the money, President Kenneth Kaunda was depicted on the obverse and various representatives of the flora and fauna on the reverse. A coin equivalent to 50 ngwe was introduced in 1979.
Subsequently, money with the equivalent of 5 and 10 ngwee was excluded from circulation in 1987, a year later 20 ngwe were withdrawn. Coins of 1 kvach denomination were introduced in 1989 and had the inscription “Bank of Zambia” along the edges. The circulation period of this money was short, as the inflation rate increased sharply.
In 1992, new money was released (from nickel-plated steel), which offered denominations of 25 and 50 ngwe and 1, 5 and 10 kwach. All coins depicted the national emblem on the obverse and representatives of the local fauna on the reverse. This money was issued for only a year, after which its production was discontinued as the domestic economic crisis continued, and the currency of Zambia began to change accordingly.
Which of the old coins can be used today? All of the above denominations from both old and new series and today remain legal tender. But at the same time, the cost of the metal alloys from which they are made is estimated to be higher than their irrelevant nominal price, so they are never found and are not used everywhere. The only place coins can be seen today is when they are sold as souvenirs for tourists. Since the beginning of 2013, new coins were introduced in 1 kwa, as well as 5, 10, 50 ngwe.
Banknotes
The Currency Act of 1967 replaced the old money with new Kwachi and Ngwe.Since the beginning of January 1968, the Zambian pound was completely replaced with a new official rate equal to half the old rate (against the dollar). The 5 pound banknote was replaced by a 10 kwaq bill and so on. Old money began to be considered invalid.
A banknote of 5 quat was introduced in 1973. However, a banknote of 50 kwa appeared in 1986, in 1988 denominations of 100 and 500 kwa were issued, and then the issue of 1000, 5000 and 10000 kwa was issued (in 1992). In 2003, banknotes of 20,000 and 50,000 Kvach were put into circulation.
Until 1991, all banknotes had a portrait of President Kenneth Kaunda on the front side. After 1992, all bills began to be issued with the image of an eagle. The currency of Zambia, the photo of which is presented above, is not currently undergoing significant changes.
In 2003, Zambia was the first in Africa to issue polymer banknotes. Banknotes in denominations of 500 and 1000 kvach were printed on polymer.
Before the denomination, the smallest monetary denomination in Zambia was 20 kwach. However, most retail properties rounded up prices to 50 kwach when calculating for simplicity.
