Retailers and other business operators across the […]

Retailers and other business operators across the country have raised concerns that the circulation of higher-value notes such as the K500 and K200 is creating difficulties in giving customers adequate change.

The Bank of Zambia (BoZ) launched the new heritage currency family on March 31, 2025, introducing six banknotes and six coins aimed at modernizing the monetary system and May 14, 2026, the Central Bank announced that it had successfully collected 97 percent of the old currency, with only 3 percent remaining unwithdrawn and now officially demonetized.

However, stakeholders have questioned whether there is sufficient circulation of lower denominations such as K20, K10 and K5 to support smooth cash transactions in the economy.

In an interview with the Zambian Business Times – ZBT, economic expert Naylor Kopakopa said the challenge suggests an imbalance in the circulation of smaller notes compared to higher denominations.

Kopakopa explained that normally people struggle to get change and argued that smaller notes should be available in higher quantities than larger denominations in order to ease transactions.

“If printing costs allow, the central bank should consider increasing the supply of smaller notes so that the burden is removed from people,” he said.

The expert suggested that monetary authorities may need to reassess cash distribution efficiency to ensure liquidity at the lower end of the currency structure supports everyday commerce.

He concluded that without sufficient smaller denominations in circulation, the inconvenience to both retailers and consumers is likely to persist despite the successful currency reform exercise

Article by Phillip Sinkala