What is ZMK (Zambian Kwacha)’
The Zambian Kwacha-the Currency used in Zambia. It is divided into 100 ngwee and issued by the Bank of Zambia. Currency markets reduces currency as ZMK.
The penetration of ‘ZMK (Zambian Kwacha)’
The Zambian Kwacha has received its name from the word “dawn” in the language of Nyanja. Zambia accounts for a large part of the production in Africa copper. Because of this, the country’s economy and the value of its currency throughout history has experienced volatility based on shifts in the global copper market.
In 1964 the British colony of Northern Rhodesia declared independence and changed its name to the Republic of Zambia. The Bank of Zambia of Zambia released a version of pounds in 1964, which circulated alongside British pound before. The currency act of 1967 was formally established as the Kwacha replaced the pound at official rate for 1 Zambian Kwacha to 0.5 pounds, equivalent to 1.4 dollars. Zambian pound continued to circulate along the Kwacha until 1974.
The Central Bank linked the value of the Kwacha British pound and US dollar until 1971, when the devaluation of the dollar caused a revaluation of the Kwacha against the pound. Zambia subsequently for his reference to the British pound and lose its dollar peg to a rate of $ 1.4 per U.S. dollar for the Kwacha. Further devaluation of the U.S. dollar in February 1973, he headed the Central Bank to introduce a 4.5 percent crawling band for the Kwacha against the dollar.
In a period of economic decline due to the combination of low world copper prices and the increased costs of fuel caused high inflation in Zambia in the 1980-ies. The Bank of Zambia responded by issuing higher denomination currency by introducing the 100 – and 500 Kwacha banknote.
The emergence of a multiparty system led to some liberalization of the economy in the early 1990-ies, although inflation remained high. In 1996, the Bank of Zambia was forced to enter the notes in denominations of 1000, 5000 and 10,000 Kwacha as the Currency has depreciated significantly, the bottom is about 4800 Kwacha to the US dollar in 2006. The period of economic growth, bringing relative stability of the value of the Kwacha.
In 2013, the Central Bank redenominated its currency, using the denominator of 1000. Stable values against the U.S. dollar continued until 2014. The slowdown of the Chinese economy and the decline in demand for copper caused a 42% fall against the dollar in 2015. Since then, the Currency has recovered in a relatively stable range between 9 and 10.5 Kwacha to the US dollar.