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Before effecting such a decision, about K5000 =

Before effecting such a decision, about K5000 = $1.However, after implementation of the revaluation about K5 will be needed to obtain$1.DISADVANTAGES Printing costs The most obvious cost and disadvantage of this on the Zambian people will be the cost of reprinting the new notes.This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.The unsurprising question on most Zambian’s minds will be; what does that mean for me?Let us now explore some of the pros and cons of effecting such a decision.In summary, the implications of ‘knocking off’ the zeroes from the kwacha are mainly threefold: (1) The kwacha becomes more expensive relative to other currencies.(2) Exports from Zambia become more expensive in international markets.

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Before effecting such a decision, about K5000 = $1.

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For instance, if your salary is K5million before the change, you would expect your employers to ‘rebase’ it to K5000 as well-effectively meaning no real change for you.Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.The biggest hurdle here will most likely be teaching the common man how not to be taken advantage of by unscrupulous traders.Its value with respect to other currencies is being increased.The United States dollar will be taken as an example because of its universal use.Competitiveness of exports As discussed above, revaluing a currency increases the cost of local products relative to foreign ones.

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