The Bank of Zambia recently proposed a dedollarization policy aimed at strengthening the local kwacha as the sole legal tender for domestic transactions. The proposed guidelines would require all public and private transactions in Zambia to be conducted in the local currency. Violators could face up to 10 years in prison or hefty fines.
While the new currency regulations are still in draft form and under consultation, they have sparked concern within the tourism industry.
In response to the initial draft regulations, the tourism organization Africa's Eden has released a document clarifying the policy's implications for the sector. Notably, the draft regulations include specific exemptions for tourism.
• Foreign tourists may continue to pay for tourism services in foreign currency.
• Tourism enterprises registered under the Tourism and Hospitality Act are exempt from restrictions on receiving foreign currency payments.
• Companies may continue to quote prices in U.S. dollars when dealing with international entities.
Africa's Eden has urged tourism businesses to remain informed about the legislative process and adapt if necessary. However, it also emphasized that there are no immediate changes to current practices and that Zambia remains open and welcoming to international visitors.
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The proposed dedollarization policy reflects a broader trend across African countries seeking to strengthen their local currencies and reduce reliance on the U.S. dollar.