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Tanzania is currently in the process of regulating the use of foreign currencies for local transactions, and instead opt exclusively for the use of the Tanzanian Shilling.
Tanzania is regulating the use of foreign currencies for local transactions.
The central bank is amending regulations to exclusively use the Tanzanian Shilling for financial transactions within the country. The new initiative is set to be implemented on July 1, to protect the country’s monetary policy.
The East African country recently revealed that it has made amendments to its central bank, the Bank of Tanzania (BoT), which would allow for the use of its local currency for financial transactions within its borders, exclusively.
As a result, the bank, in collaboration with Tanzania’s Ministry of Finance, is working to develop new regulations that prohibit the use of foreign currencies to conduct business in the nation.
Should all go as planned, Tanzania is looking at July 1, to officially implement the new initiative which was originally intended to bolster the country’s financial strength.
The exclusive use of the Tanzanian Shilling within the country is a plan designed to protect the country’s monetary policy.
Villela Waane, the Manager of International Economics and Real Sector and the Bank of Tanzania revealed that the regulation would be made public once the kinks are worked out.
“Using foreign currencies domestically limits the supply of foreign currencies needed for importing essential goods,” Villela stated, also noting that it undermines the country’s monetary policies as well as adds to inflationary pressures.
“The aim is to strengthen the Tanzania Shilling’s value and ensure foreign currencies are reserved solely for essential imports,” she added. — Business Insider Africa
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Peter Tanyanyiwa