Only Kwacha Must Be Used for Local Transactions – BoZ

The Bank of Zambia has issued the Currency Directives, 2025, which came into effect on 26 December 2025, reinforcing the legal requirement for domestic transactions to be conducted in Zambian Kwacha.

The Directives were issued under Sections 18 and 73 of the Bank of Zambia Act, 2022, as part of efforts to operationalise the use of the Kwacha and Ngwee in domestic payments.

The central bank explained that the move follows extensive stakeholder consultations that began in February 2024, when it first announced plans to strengthen the local currency’s use in the domestic economy. 

These consultations were conducted in collaboration with the Public Private Dialogue Forum (PPDF) and involved stakeholders from the mining, manufacturing, tourism, agriculture, financial and government sectors across different parts of the country.

According to the Bank, the consultative process ensured that stakeholders were not only informed ahead of implementation, but also contributed to shaping the final provisions of the Directives.

Under the new framework, domestic transactions are defined as public or private payments made to a person resident in Zambia for transactions that take place within the country. The Directives reaffirm that such transactions must be settled in Kwacha, while also providing clearly defined exemptions for certain domestic transactions.

The Bank emphasised that the Directives do not apply to international transactions, seeking to remove uncertainty among businesses engaged in cross-border trade.

The Currency Directives and accompanying explanatory notes are available on the Bank of Zambia’s website and official social media platforms. Members of the public with queries have been advised to contact the Assistant Director – Communications at the Bank of Zambia.

The notice was issued by Besnat Mwanza, Assistant Director – Communications.