Zambian kwacha facts for kids

Quick facts for kids Zambian kwacha
ISO 4217 Code	ZMW
Official user(s)	Zambia
Unofficial user(s)	Zimbabwe  Malawi (used in the border areas between Zambia & Zimbabwe and also Zambia & Malawi)
Inflation	15.78%
Source	, January 2024 est.
Method	CPI
Subunit
1⁄100	ngwee
Symbol	K, ZK
Coins
Freq. used	5, 10, 50 ngwee, 1 kwacha
Banknotes
Freq. used	2, 5, 10, 20, 50, 100 kwacha
Printer	G&D Johan Enschede en Zonen

The Kwacha (ISO 4217 code: ZMW) is the official money of Zambia. It is divided into 100 smaller units called Ngwee.

What Does "Kwacha" Mean?

The word kwacha comes from the Nyanja, Bemba, and Tonga languages. It means "dawn". This name was chosen to represent Zambia's national idea of a "new dawn of freedom." The word ngwee means "bright" in the Nyanja language.

History of Zambian Money

Before Zambia became independent in 1964, people used the Rhodesia and Nyasaland pound. This was the official money of Northern Rhodesia, which was a British area. After Zambia gained independence, the Bank of Zambia started issuing its own money. This new money was called the Zambian pound in 1964.

From Pounds to Kwacha

On July 1, 1966, Zambia decided to change its money system. They switched to a decimal system. This meant that one Kwacha was equal to 100 Ngwee. The new Kwacha replaced the Zambian pound. One Kwacha was worth ten Zambian shillings, or half of a Zambian pound. By January 16, 1968, all Zambian pound notes and coins were replaced.

Kwacha's Value Changes

At first, the Kwacha's value was linked to the pound sterling. This meant its value was fixed. However, after the US dollar's value changed in 1971, Zambia stopped linking its money to the British pound. Instead, they linked the Kwacha to the American dollar. This change made the Kwacha's value in gold go down by 7.8%.

Over the years, the Zambian Kwacha faced high inflation. This meant that prices for things went up very quickly. Because of this, the Bank of Zambia had to introduce banknotes with very high values in 2003. These included a 20,000 Kwacha note.

New Kwacha in 2013

In 2013, Zambia introduced a new Kwacha. This was a "redenomination," which means they removed three zeros from the old notes. For example, an old 1,000 Kwacha note became 1 Kwacha. This was done to make the money easier to use.

After this change, the Kwacha's value dropped against the US dollar. In April 2021, one US dollar was worth about 22 Kwacha. However, after the 2021 election, the Kwacha's value improved. By August 2021, one US dollar was worth about 16 Kwacha. More recently, due to economic challenges like drought, the Kwacha's value has gone down again. One US dollar is now worth around 27 Zambian Kwacha.

Zambian Coins

Zambia has used different coins over the years.

Early Coins (1968-1992)

In 1968, Zambia introduced 1 and 2 ngwee coins made of bronze. They also had 5, 10, and 20 ngwee coins made of cupro-nickel. These coins showed President Kenneth Kaunda on one side. On the other side, they showed plants and animals. In 1979, a 50 ngwee coin was added to replace the 50 ngwee banknote.

In 1989, 1 Kwacha coins made of nickel-brass were introduced. However, these coins were not used for long because of high inflation. In 1992, smaller coins were introduced, including 25 and 50 ngwee, and 1, 5, and 10 Kwacha. These coins showed the national crest and native animals. They were only issued for one year.

Even though these older coins are still technically legal, they are rarely used. The metal in them is often worth more than their face value. You might only see them sold as souvenirs to tourists.

New Coins (2013 Series)

On January 1, 2013, new coins were introduced. These included 5, 10, and 50 ngwee, and 1 Kwacha coins.

Zambian Banknotes

The Zambian Kwacha banknotes have changed their look over time. The first Kwacha was issued in 1968. The second Kwacha, which is still used today, was introduced on January 1, 2013.

First Kwacha (1968–2012)

The first Kwacha banknotes were issued in different series.

First Series (1968)

The first banknotes included 50 ngwee, 1, 2, 10, and 20 Kwacha. On the front of these notes, you could see a picture of President Kenneth Kaunda. The Coat of Arms of Zambia was also featured. The back of the notes showed different scenes of life in Zambia. For example, the 50 ngwee note showed a Southern lechwe animal. The 1 Kwacha note showed farmers working in a field. The 10 Kwacha note featured the famous Victoria Falls.

Later Series (1969-2012)

Over the years, new versions of these banknotes were printed. Some small details changed, like a dot next to the value being removed. New denominations were also introduced, like the 5 Kwacha banknote in 1973. The 50 ngwee banknote was later replaced by a coin.

Until 1991, all Zambian banknotes showed a picture of President Kenneth Kaunda. After 1992, a picture of an African fish eagle was used instead. After 1989, the back of the notes featured the Chainbreaker statue. In 2003, Zambia became the first African country to print some of its banknotes on plastic. These were the 500 and 1000 Kwacha notes.

Here are some of the denominations of the first Kwacha series:

New Kwacha (2012 Series)

On January 23, 2012, the Bank of Zambia decided to redenominate the Kwacha. This was to deal with the high inflation that had affected the currency for many years. The old currency was divided by 1000. This meant that a K50,000 note became a K50 note in the new currency.

The new Kwacha became the official money on January 1, 2013. For six months, both the old and new currencies were used at the same time. After June 30, 2013, only the new Kwacha was legal.

Design of New Banknotes

The new banknotes are printed on paper and have many advanced security features. All notes are 70 mm tall. The 2 and 5 Kwacha notes are 170 mm wide, while the others are 145 mm wide.

Front (Obverse)

The front of the new banknotes all share some common features. They all have the African fish eagle, which is a key symbol. They also show the coat of arms and the signature of the Bank of Zambia Governor. Each banknote also features a unique tree found in Zambia.

Back (Reverse)

The back of the notes shows the Freedom Statue in Lusaka. It also has the Bank of Zambia's name and the value of the note in words and numbers. Each note also has a unique picture of Zambian wildlife and a scene showing an activity.

Security Features

To prevent fake banknotes, many security features are used. These include holograms, special inks, tiny printing (microprinting), and watermarks. These features make it hard to copy the money.

Special Commemorative Banknotes

The Bank of Zambia has issued two special banknotes to celebrate important events.

The first was a One Kwacha banknote issued in 1973. It celebrated the start of the "second republic" when Zambia became a One-party state.

The second was a Fifty Kwacha banknote issued on October 23, 2014. This note celebrated Zambia's 50th Independence Anniversary. Unlike the first one, this banknote could be used as regular money.

Exchange Rates

The exchange rate shows how much one currency is worth compared to another.

• As of July 29, 2024, 1 US dollar is worth about 26.18 Kwacha.

Past Exchange Rates

This table shows how many currency units you would get for one Zambian Kwacha, on average, each year.

*Running Average as of 13 January 2023

See Also

• Kwacha
• Malawian kwacha
• Economy of Zambia