The Bank of Zambia has advised members of the Zambian public that it has noted an increase in demand for kwacha bank notes over the last few months, according to a published statement.
“The Bank of Zambia has noted an unprecedented rise in demand for cash country-wide during the past few months”, read a statement issued by Besnat Mwanza, Assistant Director – Communications Division at the Bank of Zambia on 4th September 2021.
“This Demand has been more than the expected seasonal increase in demand for currency during the crop marketing season and the general elections”.
Many of the commercial banks have been experiencing shortages of cash in their cash dispensing machines. “It is true that there is a shortage of cash and the Central Bank is looking into”, from a source in one of the leading banks in Zambia whose wished not to be identified.
The bank further advised that it would put in place measures that would bring back balance in the cash circulation with the assistance of Banks. “The Central Bank, in collaboration with the commercial banks, has put in place measures to ensure that there are enough banknotes and coins in circulation throughout the country”.
In the meantime, the Central Bank has advised the general public to use alternative technological options which have experienced an increase in usage since the advent of COVID 19 in 2020. “The Bank wishes to encourage members of the public to utilise alternative payment methods to cash such as Digital Financial Services in conducting transactions during this period”. The digital options the bank is referred to include mobile money, mobile banking, debit or credit cards and electronic fund transfers through commercial banks.
The Central bank appears confident in the use of technological solutions as they indicated in the statement that “non-cash transactions allow members of the public to get the exact value for their money without any encumbrances for change as they pay for goods and services”.