Maravi

BoZ finalises legal protection to guide currency rebasing

BoZ finalises legal protection to guide currency rebasing
By Kabanda Chulu
Thu 18 Oct. 2012, 12:30 CAT

A BILL to give legitimacy and legal protection to guide the currency rebasing exercise has been finalised and will be taken to Parliament, says a senior Bank of Zambia official.

And Standard Chartered Bank is spending K5 billion on upgrading of equipment and software including training of staff and customers to ensure smooth transition to the use of new currency.

Officiating at the StanChart-organised forum for customers on the rebasing of the kwacha yesterday in Lusaka, Bank of Zambia currency rebasing project manager Morris Mulomba said technical guidelines had been issued to ensure the exercise was undertaken smoothly.

"Everything has to change and banks, including the public, they have to adjust to the system. So software, computers and various equipment will have to be calibrated to suit the rebasing of the kwacha," Mulomba said.

"To make things clear because there might be disputes on contracts, for example, if you pay rentals for K4,000,000, you will now pay K4,000, so a misunderstanding can arise but to give legitimacy and legal protection, we shall introduce the currency redenomination Act which the finance minister will be taking soon to Parliament since the Act has to be in place before January 2013."

He said the rebasing exercise had received positive response from people across the country.

"People now understand that this will be for their benefit, of course, there are concerns like people in rural areas will be defrauded during the changing exercise but we are still carrying awareness messages. And banks also complained that they didn't plan for calibration of equipment, but we have told them it is a minimal cost and it is a requirement to adjust."

And StanChart acting managing director Kelvin Musana said the bank was ready to support various policy measures that would translate into increased economic activity

"We have taken this initiative to host a series of workshops aimed at educating our clients, members of staff and the public on currency rebasing and we have set K5 billion for this project," said Musana.

Labels: BOZ, KWACHA, STANCHART

posted by MrK @ 6:25 PM