The Bank of Zambia (BOZ) is advancing its de-dollarisation strategy by pushing for the kwacha to be the sole legal tender for domestic transactions.
Governor Denny Kalyalya emphasised that this move aims to uphold existing laws rather than introduce new ones.
The BOZ is actively seeking feedback from stakeholders, including those who oppose the proposal, before finalising the policy.
The de-dollarisation plan has generated significant controversy.
The International Monetary Fund (IMF), represented by Eric Lautier, has raised concerns that the policy could worsen inflation issues rather than address them.
Lautier’s caution reflects broader worries about the economic impact of removing the U.S. dollar from domestic transactions.
Various Zambian business organisations have also criticised the plan, suggesting it might disrupt their operations and hinder economic growth.
In response, Kalyalya reassured the public that the BOZ's goal is not to eliminate the dollar but to reinforce the kwacha's legal status as the primary currency for domestic transactions.
He argued that this policy is essential for strengthening Zambia’s monetary policy and enhancing financial system stability.
The central bank believes that maintaining the kwacha’s legal tender status will contribute to a more stable economic environment.
The BOZ is continuing to gather feedback from different stakeholders and encourages acceptance of the final decision after the consultation process.
Despite ongoing debates, the central bank remains committed to its de-dollarisation strategy, believing that enforcing the kwacha as the sole legal tender will help stabilise Zambia’s financial system and align with broader monetary policy objectives.