Bank of Zambia Currency Directives 2025: Paying in Kwacha, Not Foreign Currency

The Bank of Zambia Currency Directives 2025 reinforce the Kwacha and Ngwee as the sole legal tender for domestic transactions in Zambia, meaning most payments within the country must now be settled in local currency rather than in USD or other foreign currencies. These directives apply to both private parties and Government when they undertake domestic transactions, unless a transaction falls under a specific exception listed in the Schedule.

Under the new framework, any domestic contract that is priced or denominated in foreign currency must still be paid in Kwacha, using the market exchange rate and, if parties cannot agree, the published Bank of Zambia mid rate as the reference. When Government is a party to a domestic transaction, it may not quote, invoice, pay or receive payment in foreign currency, except in exempt cases, and must transact in Kwacha.

The directives also set out clear penalties for non compliance, including fines of up to 2,500 penalty units, imprisonment for up to two years, and separate administrative penalties that the Bank of Zambia may impose, with potential liability extending to directors and managers who authorise or permit breaches. At the same time, the Schedule preserves the use of foreign currency for specific areas such as certain financial products, qualifying mining transactions, non resident tourism payments, electricity trading, exports and imports, some agricultural and gemstone exports, and specified tolls and tax remittances.

Visit below sites to review the official instruments in full, the Bank of Zambia has published the Currency Directives 2025 and the Explanatory Notes on its website:

• Bank of Zambia Currency Directives 2025 (PDF): https://www.boz.zm/Bank_of_Zambia_Currency_Directives_2025.pdf

• Explanatory Notes on the Currency Directives 2025 (PDF): https://www.boz.zm/Explanatory-Notes-on-the-Currency-Directives-2025.pdf