The kwacha (ISO 4217 code: ZMK) is the currency of Zambia. It is subdivided into 100 ngwee.

The name derives from the Nyanja and Bemba word for "dawn", alluding to the Zambian nationalist slogan of a "new dawn of freedom". The name ngwee translates as "bright" in the Nyanja language.

In 1968, the kwacha, a decimal type currency replaced the short lived pound at a rate of 2 kwacha = 1 pound (10 shillings = 1 kwacha). During the Kenneth Kaunda regime the value of the currency was fixed at a rate of approximately 1.2 kwacha to 1 USD. During the late eighties and early nineties a severe economic crisis emerged stemming from poor government oversight and overspending. As a result the currency suffered from high inflation throughout the 1990's and 2000's. By 2006, it took 4,800 kwacha to buy one U.S. Dollar.

As of March 8, 2011, 1 US dollar was equal to 4,715 kwacha.[1]

As of January 23, 2012, 1 US dollar was equal to 5,120 kwacha [2]

On January 23rd, 2012, Finance Minister Alexander Chikwanda announced that Zambia would rebase the kwacha currency by lopping off three zeros, a move that should make it easier for foreign investors to participate in the economy.