Zambia is poised to enact stringent regulations aimed at prohibiting the use of foreign currencies, such as the U.S. dollar, in local transactions.

The Bank of Zambia has drafted guidelines that, if approved, will impose up to ten years of jail time and substantial fines for those found violating these rules.

The initiative seeks to bolster the national currency, the kwacha, and diminish the adverse effects of dollarisation on Zambia’s monetary and exchange rate policies.

Deputy Governor Francis Chipimo highlighted concerns that reliance on the dollar undermines economic stability and hampers the central bank's influence.

The move comes amid a challenging economic backdrop for the kwacha, which has struggled against the dollar amid ongoing demand for foreign exchange in importing essential goods like petroleum products.