Bank of Zambia Head of Public Relations Kanguya Mayondi said in a statement that the rebased Kwacha will become legal tender on 1st January 2013 and accordingly will be accepted as a medium of exchange in Zambia.
Mayondi said the Central Bank has designated 1st January,2013 to 30th June, 2013 as the transition period during which both the old and the rebased currencies will circulate simultaneously.
He explains that at the end of the transition period, the simultaneous circulation of the currencies will cease and the old currency will not be accepted for ordinary transactions.
He however says financial institutions will continue to exchange the old currency for the rebased currency from both clients and members of the public at no fee.
Mr Mayondi adds that the exchange of the old currency for the rebased currency at financial institutions is expected to continue for 18 months until 31st December,2014.
He says all business entities are required to commence preparations for the adaptation of all systems and infrastructure, accounting packages, related software and infrastructure which must be completed in readiness for the changeover date of 1st January,2013.
Mr Mayondi further states that with effect from 1st January 2013, all financial institutions will be required to make payments to customers in the rebased currency, convert all bank balances to the rebased currency, and ensures that all ATM dispense rebased currency.
He adds that all amounts shown on receipts and points of sale machines will be expressed in the rebased currency utilizing the new currency code ZMW, and that all company balance sheet items as at close of business on 31st December 2012 will be converted to the rebased currency.
He also states that all data maintained on accounting and other processing packages will be expressed in the rebased currency with the new currency code ZMW,while all financial and supporting documentation for businesses will be prepared in the rebased currency and amounts shown on debit instruments, such as cheques and promissory notes issued by 31st December,2012 for settlement after this date will be converted to the rebased currency.