BOZ CURRENCY DIRECTIVES 2025: BRINGING THE KWACHA BACK TO THE CENTRE OF THE STAGE.
By Malcolm Jhala.
The Bank of Zambia’s new Currency Directives have quietly shifted the country’s economic centre of gravity. From now on, if a transaction happens in Zambia, the payment must land in Kwacha. You can still quote in USD if that’s how you make sense of your pricing, but when money changes hands, it does so in our own currency. And that simple rule changes the behaviour of the entire economy.
For years, dollar‑linked settlements made the Kwacha play catch‑up in its own backyard. Prices moved with exchange‑rate rumours rather than real domestic conditions, and monetary policy struggled to influence inflation. By bringing settlements home to Kwacha, BoZ strengthens its tools: interest‑rate decisions gain traction, inflation becomes easier to anchor, and the economy becomes less exposed to global currency swings.
Businesses that relied on foreign‑currency settlements must now sharpen their financial planning. Local‑currency inflows mean tracking exchange‑rate risks more deliberately, adjusting pricing strategies, and building resilience rather than leaning on USD receipts as a safety net. But predictability improves: fewer dual‑currency distortions, clearer cash‑flow expectations, and a domestic market that behaves like one.
For ordinary citizens, this shift promises calmer prices. When your monthly budget no longer dances to the tune of a street‑corner rate, everyday life becomes a little less volatile. Trust in the Kwacha grows when it is used consistently, and that trust is the foundation of a stable currency.
The Directives ask Zambia to let the Kwacha do the job it was created for. Strength comes from use, and this policy nudges the entire economy toward that strength.