The Governor of the Bank of Zambia, Dr. Denny H. Kalyalya, today delivered a presentation on "The Economic Implications of the New Currency" at a public lecture hosted by the University of Zambia Mathematics, Economics and Statistics Association (UNZAMESA) from the School of humanities and Social Sciences.
According to the presentation, Dr Kalyalya said there was no evidence that previous currency redesigns in Zambia have led to macroeconomic instability, citing Zambia's historical experience with similar reforms. He noted that past redesigns and high-denomination issuances did not cause significant shifts in inflation trends.
The Governor emphasised that the current redesign was undertaken within a "relatively stable macroeconomic environment" and that potential risks are mitigated by avoiding an unsustainable expansion of the money supply, managing public expectations, and operating without underlying fiscal fragilities.
The Governor further elaborated on the new family of banknotes and coins, which includes K500 and K200 banknotes and K2 and K5 coins, introduced on March 31, 2025. He explained that the purpose of the new currency was to enhance transactional efficiency while featuring improved security and accessibility for the visually impaired. He clarified that this is a redesign, not a redenomination, and therefore does not alter the face value or underlying macroeconomic fundamentals.
And the University of Zambia Vice-Chancellor, Prof. Mundia Muya, thanked the Governor for accepting the invitation from the students, stating that his presence "signifies not only institutional collaboration, but also a deep commitment to engaging with academia.
Prof. Muya also expressed the university's intention to deepen its collaboration with the Bank of Zambia through initiatives such as joint research, student internships, and data-sharing.
He emphasised that the university's mission was to cultivate graduates who can "think critically, innovate boldly, and solve problems that matter," which requires stronger partnerships between academia and institutions like the central bank.
Speaking earlier School of Humanities and Social Sciences Acting Dean Prof Hambaba Jimaima appealed for a strong and lasting partnership between the university and the Bank of Zambia.
Prof. Jimaima highlighted the esteemed alumni the school has produced, including the Head of State, the Minister of Finance and National Planning, and the current Governor of the Bank of Zambia. He stressed that these high-profile individuals demonstrate the school's ability to produce graduates who can contribute significantly to national development.
"The school would appreciate if you could support us in any way, even donating the computers that cannot read the new currency," Prof. Jimaima said.
He emphasised that such a partnership would not only benefit the school but also foster collaboration and provide invaluable student internship opportunities. Prof. Jimaima urged the alumni to support the school in its mission to continue producing highly skilled graduates who can contribute to the nation's progress.