Africa's first polymer banknotes to stay

Speaking at a press briefing, Bank of Zambia's Deputy Governor Denny Kalala denied the rumor that it is withdrawing the controversial polymer banknotes from circulation.

"The position is that the Bank of Zambia is not withdrawing the polymer notes from circulation, rather it is expediting the process of exchanging unfit or faded polymer banknotes with fit notes," he said according to a report by Xinhua News.

"This process of exchanging unfit notes, whether paper or polymer, with fit banknotes is a routine and on-going core activity of any currency issuing authority including the Bank of Zambia. The replacement process is intended to ensure a continuous flow of fit and clean banknotes in circulation," he said.

The Bank of Zambia officially launched 500 kwacha and 1,000 kwacha polymer banknotes on Sept. 26, 2003. It was the first and is still the only African country to have polymer notes in circulation.

Bank officials said the polymer notes, printed by the Canadian Banknote Company, could last four times longer than the normal paper notes.

Deputy Governor Kalala said the bank has raised the issue to the printer who have undertaken to take corrective measures to ensure that the notes perform to expected standard.

"Following our observation of accelerated fading and public concerns, further tests and analysis of notes were undertaken. These tests indicate that the principal problem of accelerated fading of notes appear to be a printing problem related to the formulation of the special inks," he said.

"The Bank of Zambia would like to assure members of the public of its commitment to ensuring that the benefits of using polymer technology accrue to the country," he said.