Thursday, 3 January 2013

What's in a name?

The Zambian Kwacha has been rebased but not revalued or devalued or renamed.

 Since 1st January 2013, the rate has been reset so that what we used to call the 'pin' (effectively the basic currency rate for all but the tiniest transactions,1000 kwacha, equivalent to about 12p) has become the new kwacha. 
Three zeros  disappear with a sigh of relief so now we have about 8 ZKW to £1 instead of the previous exchange rate of around 8,000 ZMK to £1 or GBP in new-speak.  Very logical and should lead to a much simpler system all round; the old and new kwacha peacefully co-existing until June by which time the old notes will have been removed from the system.

But this is Zambia where nothing is ever quite as it seems nor as simple as it should be so problems have arisen.  The best seems to be when people pay using old kwacha (ZMK) and refuse to receive their change in new kwacha (ZKW) as they are thereby getting 'less kwacha'  True, of course!  But not in terms of, say bottles of Mosi beer, now available at a bargain price of ZKW 6 instead of last week's price of ZMK 6,000.  it's all in the order of the letters from ZMK (ZaMbian Kwacha) to ZKW (Zambian KWacha)

And coins are now re-introduced: 1 kwacha and 5,10 and 50 ngwee (100 ngwee = 1 kwacha-that's new kwacha, of course, ZKW)  In previous hard times, the depreciation of the kwacha (the old sort, ZMK) meant that the coins were worth more in terms of the metal they were made with than their exchange value and many excellent cooking pots came onto local markets.

I wonder if, by rebasing Shakespeare's words, 'a kwacha by any other name would smell as sweet'  But he was wondering about floral perfumes and personal nomenclature and, anyway, a 'rose' would be a novel currency descriptor.  1 Rose = ZMK 1.000... Doesn't trip off the tongue like, for example, ngwee.  So that's a 'no'.  Meanwhile, those of us fortunate to have been millionnaires are now mere thousandaires and the days of being able to leave an ATM with a bit of an internal swagger as a freshly minted millionnaire are long gone.  Now minted, that has currency overtones too    100 Mints = 1 Rose?

The fun continues!

1 comment:

  1. In fact, the rebased kwacha has been referred to as KR so prices look like: K 3,000 / KR 3. Ngwee are shown as decimal kwacha

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