Some background.
The Zambian Kwacha (ZMK) was introduced in 1968 at a rate of 50p (UK) to the Kwacha. Today, ZMK 4000 will get you 50p. Practically all of the loss of value took place in the last 15 years.
Zambia is one of the poorest countries on earth. Almost 70% of the population lives below the poverty line. Its economy depends on copper and agriculture. The last two years were exceptionally good for the economy, as food prices increased, helping the farmers and copper prices floated up on the weakness of all major currencies. Growth in those two years amounted to a mere 6%. Due to increased food prices, inflation currently stands at over 6% MONTHLY.
The economy is dollarised to a considerable degree. Chances are that the new currency will be largely irrelevant also, except to the poor.
Peter
