
The Zambian Kwacha is the official currency of Zambia, and it's essential to understand how it works if you're planning a trip or doing business in the country. The kwacha is subdivided into 100 ngwee.
You can exchange your money for Zambian kwacha at the airport, banks, or currency exchange offices. The exchange rate can fluctuate, so it's a good idea to check the current rate before you travel.
The Zambian economy is primarily driven by the mining industry, particularly copper mining, which is the country's main export.
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History of Kwacha
The Zambian kwacha has a rich history that spans over five decades. The currency was introduced in 1968, replacing the Zambian pound.
The first paper banknotes were issued by the Central Bank of Zambia in 1968, with five denominations: 50 ngwee and 1, 2, 10, and 20 kwacha. These banknotes were the first of their kind in Zambia.
In the 1980s, the Central Bank of Zambia introduced 100 and 500 kwacha banknotes, and in 1996, they added 5,000; 10,000; 20,000; and 50,000 kwacha banknotes to combat rapid inflation.
The kwacha underwent a significant change in 2013, when Zambia "rebased" its currency, dividing denominational values by 1,000. This led to the introduction of new bills and coins, with the old currency being replaced by the new ones.
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History
The Kwacha has a rich history that spans several decades. It was first introduced in 1969 as the official currency of Zambia.
In 1969, Zambia gained independence from British colonial rule, and the Kwacha was introduced as the new national currency.
The first series of Kwacha banknotes featured a portrait of Kenneth Kaunda, Zambia's first president.
The Kwacha was pegged to the British pound at a fixed exchange rate of 1:1.
What Is the
The Kwacha is the official currency of Zambia, introduced in 1968 to replace the Zambian pound. It's named after the Zambian bird, the kwacha.
The currency was initially pegged to the British pound at a rate of 1 GBP = 2.8 ZMW. This peg was maintained until 1992 when Zambia adopted a floating exchange rate system.
In 1973, the Zambian government introduced the first coins to circulate in the country, featuring the image of the Zambian president. The coins were 1, 2, and 5 kwacha denominations.
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Zambia's First Paper Banknotes Issued in 1968
The first paper banknotes of the kwacha were issued in 1968 by the Central Bank of Zambia. They introduced five denominations: 50 ngwee and 1, 2, 10, and 20 kwacha. The Central Bank of Zambia issued its first paper banknotes in 1968. In 1968, the Central Bank of Zambia issued the first paper banknotes of the kwacha.
The kwacha bill changed over time, with seven emissions of the first kwacha known to exist. The design of the kwacha bill changed as time went on. Each emission shares similar general features in design throughout all the banknotes.
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Kwacha Denominations
The Zambian kwacha has had its fair share of denominations over the years. In 1968, the Central Bank of Zambia introduced paper banknotes in five denominations: 50 ngwee and 1, 2, 10, and 20 kwacha.
The bank continued to add new denominations in the 1980s, introducing 100 and 500 kwacha banknotes. In the 1990s, the bank responded to rapid inflation by issuing 5,000; 10,000; 20,000; and 50,000 kwacha banknotes.
The kwacha has undergone a significant change in 2013, when the Central Bank of Zambia "rebased" the currency by dividing denominational values by 1,000. This change replaced the old currency with new bills and coins, with a 5,000-kwacha bill becoming equivalent to 5 new kwachas.
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Coins
Coins have played a significant role in Zambia's monetary system. The first coins were introduced in 1968, featuring President Kenneth Kaunda on the obverse and flora and fauna on the reverse.
A 12-sided 50 ngwee coin was introduced in 1979 to replace the 50 ngwee note, featuring commemorative FAO themes. This coin was unique in its design.
In 1982, copper-clad-steel replaced bronze in the 1 and 2 ngwee coins, which were struck until 1983. The 5 and 10 ngwee coins ceased production in 1987 and 1988 respectively.
Newer coins were introduced in 1992, consisting of nickel-plated-steel 25 and 50 ngwee and brass 1, 5 and 10 kwacha coins. These coins depicted the national crest on the obverse and native fauna on the reverse.
However, the economic crisis led to the discontinuation of these coins after only one year. Today, all these coins remain legal tender, but their metal value is worth more than their face value.
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The new kwacha coins were introduced on January 1, 2013, for 5, 10, 50 ngwee, and 1 kwacha denominations. These coins are still in circulation.
Here are the details of the new kwacha coins:
The new coins have different technical parameters, such as diameter, thickness, composition, and edge design. For example, the 5 ngwee coin has a diameter of 19 mm and is made of nickel-plated steel.
Banknotes
The Zambian kwacha has a fascinating history when it comes to its banknotes.
The first kwacha bill was issued in 1968 to replace the Zambian pound, marking the beginning of the kwacha's existence.
Initially, the Central Bank of Zambia printed five denominations: 50 ngwee and 1, 2, 10, and 20 kwacha.
In the 1980s, the bank introduced two new denominations: 100 and 500 kwacha banknotes.
The Zambian kwacha underwent a significant change in 1996, with the introduction of higher denominations: 5,000; 10,000; 20,000; and 50,000 kwacha.
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The kwacha's design has also evolved over time, with slight changes in colors and activity-based themes on the reverse of the banknotes.
Only one emission of the second kwacha was introduced in circulation on January 1, 2013, and it still exists without any changes in design or security features.
The kwacha's rebasing in 2013 led to a significant change in denominational values, where old currency was replaced by new bills and coins.
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First Series (1968-2012)
The First Series of Zambian kwacha was issued in 1968 and lasted until 2012. This series was the foundation for the country's currency.
The Central Bank of Zambia introduced the first paper banknotes in 1968, featuring five denominations: 50 ngwee and 1, 2, 10, and 20 kwacha. These denominations were the starting point for the country's currency.
The first series saw some changes in the following decades, with the introduction of 100 and 500 kwacha banknotes in the 1980s.
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First (1968–2012)

The first series of kwacha banknotes was issued in 1968, marking the beginning of Zambia's paper currency.
They started with five denominations: 50 ngwee and 1, 2, 10, and 20 kwacha banknotes.
In the 1980s, the Central Bank of Zambia introduced two new denominations: 100 and 500 kwacha banknotes.
These new denominations joined the original five, expanding the range of banknotes available.
The old currency was replaced by new bills and coins in 2013, after Zambia "rebased" its currency by dividing denominational values by 1,000.
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Third Issue (1974–1976)
The Third Issue of the First Series was a significant period that lasted from 1974 to 1976. During this time, the publication underwent a major redesign, with a new layout and typography that aimed to make the content more engaging and accessible to readers.
The new design was a response to feedback from readers who felt the previous format was too dense and overwhelming. This redesign helped to increase circulation and attract a wider audience.

The Third Issue saw the introduction of more in-depth features and articles, including a regular section on book reviews. This addition was well-received by readers and helped to establish the publication as a go-to resource for literary enthusiasts.
The Third Issue also marked a shift towards more investigative journalism, with a series of exposés on social and environmental issues. These articles sparked important conversations and raised awareness about pressing concerns of the time.
Despite these positive developments, the Third Issue faced financial challenges, which ultimately led to a reduction in staff and a more streamlined editorial approach.
New (2012 Series)
The New (2012 Series) of the Zambian kwacha was introduced in 2012 as part of a redenomination plan to address the country's high inflation rates.
The Bank of Zambia proposed this measure in January 2012 and it was approved by the government, being one of the measures required to address costs associated with the continuous devaluation of the national currency.
The old currency unit was divided by 1000, removing three zeros from the preexisting denominations, with the K50,000 note becoming K50, K20,000 becoming K20, and so on.
The lower denominations of K500, K100, and K50 were also divided by 1000 and changed into the 1 Kwacha, 50, 10, and 5 Ngwee coins respectively.
The K20 banknote was removed from circulation due to its extremely low purchasing power.
The new redenominated currency became the legal tender of Zambia on January 1, 2013, and the old and new currencies were allowed to circulate side by side for a transition period of six months.
By June 26, 2013, the Bank of Zambia managed to withdraw 3.7 trillion Kwacha in old banknotes, accumulating to about 95.3% of the circulating banknotes.
The old currency ceased to be legal tender four days later, but residents could still exchange the old currency for the new one through commercial banks and other designated agents.
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Commemorative Banknotes

The Bank of Zambia has issued commemorative banknotes to mark significant events in the country's history. The first commemorative banknote was a One Kwacha note issued in 1973 to commemorate the birth of the second republic.
This note featured a portrait of President Kenneth Kaunda on the obverse and an image of him signing the declaration of the one-party state on the reverse. The note had a red-orange and brown on multicolor underprint and a watermark of President Kenneth Kaunda.
A specimen banknote was also issued in celebration of the same occasion, with a SPECIMEN overprint in red sans on both the obverse and reverse. The first commemorative banknote was a limited edition, and its existence is a fascinating footnote in Zambian currency history.
The Bank of Zambia introduced its second commemorative banknote in 2014, a Fifty Kwacha note to commemorate the 50th Independence Anniversary. This note featured a unique design, with portraits of the presidents of Zambia since independence in 1964 and until 2014, as well as the Bank of Zambia Headquarters and the Freedom Statue in Lusaka.
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Commemorative Banknotes

Commemorative banknotes are a unique way for a country to celebrate its history and milestones. The Bank of Zambia has issued two commemorative banknotes, both of which are special in their own way.
The first commemorative banknote was issued in 1973 to commemorate the birth of the second republic. It's a One Kwacha banknote featuring a portrait of President Kenneth Kaunda on the right side.
The reverse of the note shows President Kenneth Kaunda signing the declaration of the One-party state on the left, with a crowd in the middle. The commemorative text reads "THE BIRTH OF THE SECOND REPUBLIC December 13, 1972".
A specimen banknote was also issued in celebration of the same occasion, featuring the same design but with a "SPECIMEN" overprint in red sans.
Here is a list of the commemorative banknotes issued by the Bank of Zambia:
- One Kwacha (P-16a) - 1973
- One Kwacha (P-16s) - 1973 (specimen)
- Fifty Kwacha (P-55) - 2014
The Fifty Kwacha banknote, issued in 2014, commemorates the 50th Independence Anniversary. It features a blue on multicolor underprint with a coat of arms, dove, African fish eagle head, Big Tree National Monument in Kabwe, and African fish eagle perched on a branch on the obverse.
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Zambia Leads Africa in Polymer Banknotes

Zambia was the first African nation to print polymer banknotes in 2003, making a significant innovation in the field of currency printing.
Polymer banknotes are much more durable than paper, which means they can withstand wear and tear better.
This durability also makes it easier to add enhanced security features to prevent counterfeiting with polymer printing materials.
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Exchange Rates
The Zambian kwacha has been the official currency of Zambia since 2013, replacing the Zambian pound which was in circulation from 1968 to 2012. The current exchange rate is $1 = 26.18 kwacha as of 29 July 2024.
The value of the Zambian kwacha has remained relatively stable over the past week, with a -0.442% decrease compared to its value 7 days ago. This stability is a welcome relief for those using the currency.
As of 13 January 2023, the running average exchange rate for the Zambian kwacha is 18.47 units per one ZMW kwacha.
Here's a breakdown of the historical exchange rates for the Zambian kwacha against major currencies:
The Zambian kwacha has undergone a significant change in its exchange rate over the years, influenced by various economic factors.
Kwacha Facts
The Zambian kwacha has a fascinating name that reflects the country's history and culture. The word "kwacha" comes from the Nyanja, Bemba, and Tonga language, where it means "dawn".
The name of the kwacha currency is closely tied to the country's nationalist slogan, which envisioned a "new dawn of freedom". This slogan is a powerful reminder of Zambia's struggle for independence.
In the Nyanja language, the word "ngwee" translates to "bright", giving us a sense of the currency's name's meaning.
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Zambia's Economy
Zambia's economy has made significant strides in recent years, thanks to the government's efforts to diversify its industries beyond copper exports. This has helped insulate the Kwacha from volatility associated with commodity-dependent currencies.
The country has witnessed impressive growth in sectors like agriculture, manufacturing, tourism, and renewable energy. These sectors have contributed to the economy's resilience and stability.
A landmark debt restructuring deal with the International Monetary Fund (IMF) in 2023 was a major turning point for Zambia's economy. The $1.4 billion support package has unlocked new avenues for investment and freed up resources for growth-oriented initiatives.

The Central Bank's measured approach to monetary policy has also bolstered the Kwacha's stability. By keeping inflation in check, policymakers have reinforced investor confidence and supported the currency's appreciation.
The Kwacha's emergence as Africa's top-performing currency in 2024 is a remarkable turnaround that has sent ripples through the continent's business landscape.
Business and Currency
The Kwacha's newfound strength has a significant impact on businesses operating in Zambia. With the currency appreciating against major currencies like the US dollar, your business can enjoy more purchasing power, making it easier to source goods and services.
This translates into lower costs and improved profit margins, giving you a stronger competitive edge in the market. The Kwacha's strength also enables you to offer more competitive pricing to international buyers, boosting your appeal in overseas markets.
Businesses like Harvest Bounty are already seeing the benefits, with CEO Mary Simwanza noting that the Kwacha's appreciation has been a game-changer for their export business. They can now price their organic produce more competitively in Europe and the Middle East, opening up new opportunities for expansion.
Unlocking Currency Benefits for Business

The Kwacha's newfound strength is a game-changer for businesses in Zambia.
With the Kwacha appreciating significantly against the U.S. dollar and other major currencies, your business will enjoy considerably more bang for your buck when sourcing goods, services, or making investments in Zambia.
This enhanced purchasing power translates into lower costs, improved profit margins, and a stronger competitive edge.
The Kwacha's strength will enable you to offer more competitive pricing to international buyers, boosting your appeal in overseas markets and helping you win market share and drive volume growth.
Mary Simwanza, CEO of Zambian agribusiness Harvest Bounty, says the Kwacha's appreciation has been a game-changer for her export business, allowing her to price organic produce more competitively in Europe and the Middle East.
A strong local currency like the Kwacha significantly simplifies your financial workflows, streamlining cross-border transactions and saving you time and money.
The Kwacha's remarkable turnaround signals to the global business community that Zambia is a market on the rise, brimming with untapped potential, and this enhanced reputation can work in your favor when seeking to attract international investment.
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Seizing the Opportunity: Your Roadmap to Success

Now is the opportune moment for forward-thinking companies to explore Zambia's vast business potential. The Kwacha's rise is a key factor to consider in your African expansion strategy.
To capitalize on this currency's strength, you need to conduct a comprehensive market assessment. This involves evaluating Zambia's economic landscape, industry dynamics, and regulatory environment to identify the most promising sectors and opportunities aligned with your core competencies.
Establishing a strong local presence in Zambia is crucial for fully harnessing the Kwacha's benefits. Consider setting up a physical operation through a subsidiary, joint venture, or strategic partnership to gain greater access to local supply chains, distribution networks, and talent pools.
Optimizing your financial management is essential to maximize the Kwacha's purchasing power. This may involve invoicing customers in Kwacha, negotiating supplier contracts in the local currency, and deploying hedging strategies to mitigate exchange rate risks.
The Kwacha's strength can be a key differentiator in your pricing and value proposition. By exporting from Zambia, you can offer more competitive rates compared to rivals operating in markets with weaker currencies.

Securing financing options denominated in the Kwacha can protect your business from exchange rate volatility. Consider exploring Kwacha-denominated loans, bonds, or trade facilities to align your funding sources with your Zambian operations.
Collaborating with local stakeholders is vital to navigating regulatory complexities and unlocking valuable business opportunities. Forge strong partnerships with Zambian institutions, industry associations, and government entities to deepen your understanding of the market.
Currency Conversion
Converting Zambian kwacha to US dollars is a straightforward process. Simply type in the box how much you want to convert, and our currency converter will take care of the rest.
To get started, select ZMW in the first dropdown as the currency you want to convert from, and USD in the second dropdown as the currency you want to convert to. This will give you the current ZMW to USD rate.
Our currency converter will not only show you the current rate but also how it's changed over the past day, week, or month. This can be a useful tool for making informed decisions about your currency exchange.
The current exchange rate for Zambian kwacha to US dollars is 0.035, reflecting a -0.186% change since yesterday.
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Sources
- https://en.wikipedia.org/wiki/Zambian_kwacha
- https://www.investopedia.com/terms/forex/z/zmk-zambian-kwacha.asp
- https://blog.remitly.com/currencies/zambian-kwacha/
- https://mjconsultants.co.zm/how-the-zambian-kwacha-is-favorable-for-business-investments/
- https://wise.com/us/currency-converter/zmw-to-usd-rate/history
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