Dar es Salaam. The Bank of Tanzania (BoT), in partnership with the Ministry of Finance, is working on new regulations to enforce a ban on using foreign currencies for domestic transactions. This follows amendments made to the Bank of Tanzania Act under Section 26(2), which now prohibits the use of foreign currency for transactions within the country.
Set to take effect from July 1, 2024, the law aims to protect Tanzania’s monetary policy by ensuring that the Tanzanian Shilling remains the primary currency in use.
Manager of International Economics and the Real Sector at BoT, Villela Waane, said yesterday that once the drafting process is completed, the regulations will be gazetted and made available to the public.
She said that the use of foreign currency undermines the effectiveness of Tanzania’s monetary policy and contributes to inflationary pressures. “Using foreign currencies domestically limits the supply of foreign currency needed for importing essential goods,” she said.
The BoT, said, has instructed commercial banks to cease facilitating transactions involving foreign currencies, including payments for taxes, fees, goods, and services.
“The aim is to strengthen the Tanzanian Shilling’s value and ensure foreign currencies are reserved solely for essential imports,” she added.
The Director of Financial Markets at BoT, Mr Emmanuel Akaro, said that certain individuals have been paying for goods, including property rentals and school fees, using foreign currencies, an act that is now deemed illegal.
BoT is actively educating the public, businesses, banks, and schools about the new regulations, Akaro noted. He encouraged the public to report any violations of the law to BoT or other authorities.
“These changes are part of a broader effort to stabilise Tanzania’s financial system and maintain the integrity of our monetary policy,” he concluded.
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The initiative highlights the party’s commitment to recognizing and supporting individuals who have served with dedication and integrity.
Babu Duni, who stepped down earlier this year, was succeeded by Othman Masoud, now the First Vice President of Zanzibar.
The policy aims to provide ongoing respect and support to retired leaders, ensuring their continued recognition and contribution to the party’s development.
“Recognizing their significant contributions to the development and prosperity of the party, this policy ensures that retired leaders continue to be acknowledged and respected by both the party and the community,” the policy states.
To benefit from this policy, leaders must not have left or been expelled from the party. They must have served the party with honor and dedication. The national leadership committee will determine whether a leader has fulfilled these criteria.
The policy seeks to honor retired leaders, protect their dignity, acknowledge their contributions, leverage their ideas for the party’s growth, and support them to the best of the party’s ability.
In honoring these leaders, the party will provide a vehicle, the type of which will be determined by the national leadership committee. Additionally, they will receive a monthly allowance, with the amount also set by this committee.
Other benefits include health insurance. If a leader does not own a home, the party will cover their rent at a rate decided by the committee.
The leadership committee may also grant special recognition based on the leader’s contributions. Retired leaders will participate in decision-making meetings according to procedures outlined in the party’s constitution.
Depending on the party’s resources at the time, the policy may also apply to retired deputy chairpersons for both the mainland and Zanzibar, the Secretary-General, Deputy Secretary-General for both mainland and Zanzibar, and the party’s Attorney General.
Additionally, leaders, executives, or members with exceptional contributions to the party’s protection, advocacy, and defense may also benefit, as determined by the leadership committee.
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