The Bank of Zambia published the Governor’s opening remarks for the final consultative meeting on the draft 2025 Currency Directives, confirming that the latest version has been simplified following stakeholder feedback and is intended to require domestic transactions to be settled in Zambian kwacha unless an exemption applies. Quoting and invoicing would still be permitted in foreign currency, while transactions involving the Government would require quoting, invoicing, and settlement exclusively in kwacha. The Bank indicated the directives will be accompanied by explanatory notes to support compliance. The Governor framed the directives as part of a broader reform package that includes the Electronic Balance of Payments monitoring system, the Export Proceeds Tracking Framework, the Foreign Exchange Market Guidelines, and revised Interbank Foreign Exchange Market Rules, alongside work to introduce non-deliverable forwards. Stakeholders’ concerns raised during consultations included perceived reintroduction of exchange controls, implementation timing amid high inflation, low liquidity and high interest rates, increased exchange rate risk and limited affordable hedging, possible supply chain disruption, the need to draw lessons from the implementation and revocation of SI No. 33, and requests for phased implementation, clearer and more principles-based exemptions, clarity on banks’ roles, and treatment of foreign currency lending. The meeting concluded a consultation process launched after the directives were announced in February 2024, with multiple engagements across the country and a final round that began in August 2025. The remarks also referenced the Minister of Finance and National Planning’s statement in the 2026 Budget Speech that the directives will be effected by the end of 2025, with the Bank inviting further comments on the most recent draft presented at the session.

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