David Livingstone reached the upper Zambezi River in 1851, and emissaries of Cecil Rhodes and the British South Africa Company concluded treaties with most Zambian chiefs in the 1890s. Northeastern Rhodesia and Northwestern Rhodesia, which were administered by the British South Africa Company, were united as Northern Rhodesia in 1911. Northern Rhodesia became a British Protectorate in 1924 when the government took over administration from the South Africa Company. Zambia was part of the Federation of Rhodesia and Nyasaland (comprising present-day Malawi, Zambia and Zimbabwe) from August 1, 1953 until December 31, 1963. Northern Rhodesia became independent Zambia on October 24, 1964.
South African coins circulated between 1923 and 1933, and beginning in 1932 the Southern Rhodesia Currency Board issued coins for Zambia. British Pound Sterling (GBP) coins circulated in Northern Rhodesia and remained legal tender until December 31, 1954. Banknotes issued by the Standard Bank of South Africa, National Bank of South Africa and Barclays Bank DCO also circulated, though these banknotes were issued in Salisbury (Harare) rather than in Northern Rhodesia.
When the Southern Rhodesia Currency Board was established on November 1, 1940, these banknotes lost their legal tender status on March 1, 1942. The Southern Rhodesia Currency Board issued its own pound (RHSP) and Northern Rhodesia became part of this arrangement in 1943-1944. The currency board’s name was changed to the Central African Currency Board on March 12, 1954 and Northern Rhodesia (Zambia) and Nyasaland (Malawi) gained a larger role in the new currency board. Coins issued by the Currency Board then replaced the British coins that had circulated until that point. The Bank of Rhodesia and Nyasaland was founded on April 1, 1956 and became the Central Bank for the Federation of Rhodesia and Nyasaland, issuing the Rhodesia and Nyasaland Pound (RHFP).
The Zambia Pound (ZMP) was introduced at par with the Rhodesia and Nyasaland Pound on August 7, 1964. The Kwacha (ZMK) replaced the Pound on January 16, 1968 with 2 Kwacha equal to 1 Pound, and 1 Kwacha divisible into 100 Ngwee. The Bank of Zambia is the sole note-issuing authority in Zambia. |
