The Bank of Zambia (BoZ) has announced that all domestic transactions must now be conducted in Zambian Kwacha, following the issuance of the Currency Directives 2025, which came into effect on December 26, 2025.
In a statement, BoZ Assistant Communication Director Bessy Mwanza said the directives, issued under Sections 18 and 73 of the Bank of Zambia Act of 2022, are intended to establish the Kwacha as the country’s legal tender for local transactions.
Ms. Mwanza explained that domestic transactions include both private and public payments to persons resident in Zambia or transactions conducted within the country.
The directives provide specific exemptions and do not apply to international transactions.
She added that the new measures are expected to make it easier for businesses, corporates, and individuals to comply with the law.
The central bank revealed that the decision follows extensive nationwide consultations that began in February 2024, involving the Zambia Institute of Chartered Accountants, the Public-Private Dialogue Forum, business associations, civil society organisations, and government institutions.
According to BoZ, the consultative process allowed stakeholders to understand the proposed measures and contribute to shaping the final provisions of the directives.
By Rachel Mumba
