 Yet, after the devaluation of the US dollar on August 15, 1971, Zambia broke all its currency's ties to the British monetary unit, and pegged the kwacha to the American monetary unit.These reforms resulted in a reduction of the kwacha's gold standard by 7.8%.A few months later, the British Chancellor of the Exchequer Anthony Barber, announced the demise of the Sterling area, and flotation of the sterling pound, causing Zambia to renounce the monetary privileges once enjoyed as a member state.