BOZ STRIVES TO KEEP CLEAN NOTES IN CIRCULATION
THE Bank of Zambia (BoZ) says it endeavours to maintain an acceptable quality of banknotes in circulation to ensure easy recognition of genuine banknotes by citizens.
The central bank has, therefore, reminded citizens that there was a provision for them to submit their claims on mutilated banknotes to any commercial bank or directly to its offices at Lusaka or Ndola.
Mutilated banknotes are banknotes that show a significant loss or damage of the substrate and are generally not acceptable by the public in dayto-day transactions.
According to the BoZ, such banknotes must be removed from circulation.
This is contained in the latest BoZ journal, Zambanker on a write-up on Clean Note Policy.
“To ensure that banknotes in circulation remain clean, the
Bank of Zambia will continue to supply clean banknotes through commercial banks while withdrawing and destroying any soiled or mutilated banknotes.
On mutilated banknotes, the central bank stated that the public should submit their claims to any commercial bank or directly to the Bank of Zambia offices at Lusaka or Ndola.
“Appropriate value shall be given to the claimant depending on the extent of mutilation. To determine the value at which the mutilated currency shall be exchanged, commercial banks shall follow the Bank of Zambia guidelines for the receipt and processing of mutilated currency.
“It is the responsibility of the bank to ensure that there are adequate banknotes and coins in circulation to facilitate trade and to ensure that the public maintains the country’s legal tender under prescribed standards that aid easy identification,” said the central bank.
The bank provided guidance on when a banknote would be considered unfit for recirculation.
Some of the defects to be considered included: holes of any shape and anywhere on the note of greater than 0.5 millimetres, tears on the notes of any size or on any part of it.
Others were burning of any part of the note as well as soiling and structural damage, among others.