Economic Analyst , Yusuf Dodia has raised concerns over the introduction of new banknotes by the Bank of Zambia, warning that the move could fuel inflation, money laundering, and corruption.
Mr. Dodia argued that the new notes could shift business practices, as more people may prefer cash transactions over banking and mobile money services.
He noted that this goes against the nation’s ongoing efforts to encourage formal financial transactions.
Speaking in an interview with RCV News in Lusaka, Mr. Dodia criticized the decision, stating that the introduction of higher-value notes could also make it easier for individuals to bypass digital saving and payment systems.
“The change is likely to affect the value of the Kwacha, as lower denominations like the K2 and K5 coins will lose significance, leading to price increases in the market,” said Mr. Dodia.
He further warned that the move could place additional pressure on the Bank of Zambia to produce more smaller denominations while also increasing the risks of corruption, drug trafficking, and money laundering, as large sums of money could be carried discreetly in small bags.
By Melissa Zaza
