Tanzania warns against foreign currency pricing

TL;DR Breakdown

  • The Bank of Tanzania has reaffirmed the ban on pricing commodities and services in foreign currencies.
  • The bank plans to check destabilization

Description

The Bank of Tanzania (BOT) has issued a stern reminder that demanding or quoting prices in foreign currency is illegal in the country. According to the Bank of Tanzania Act 2006, individuals or businesses refusing to accept payment in Tanzanian shillings violate the law. In a press release issued recently, the central bank also emphasized … Read more

The Bank of Tanzania (BOT) has issued a stern reminder that demanding or quoting prices in foreign currency is illegal in the country. According to the Bank of Tanzania Act 2006, individuals or businesses refusing to accept payment in Tanzanian shillings violate the law. In a press release issued recently, the central bank also emphasized that only commercial banks and Bureaux de Change are authorized to determine exchange rates.

Tanzania prohibits foreign pricing

This recent warning from the financial institution follows a previous directive issued just a month ago, which instructed authorized foreign exchange dealers in the country to only engage with licensed international foreign currency brokers. The central bank views these forex restrictions as essential steps to promote macroeconomic stability and safeguard the financial system’s integrity.

In an apparent effort to discourage the dollarization of the economy, the bank reiterated that the prohibition on foreign currency payments between citizens, introduced in August 2007 and reaffirmed in December 2017, is still in effect. However, the press release outlined a few exceptions where quoting or payment in foreign currency is permissible.

According to the central bank, prices quoted and paid by tourists or non-resident customers may be denominated in foreign currency. This includes services such as accommodation, travel expenses, airport and visa fees, transit trade, and cargo handling. In such cases, tourists and non-residents who choose to pay in foreign currencies must provide proper identification documents, such as passports or certificates of incorporation for companies, to ensure accurate statistical tracking and classification.

Nevertheless, the central bank emphasized that for goods and services like rentals, education fees, and medical expenses, prices must be quoted in Tanzanian shillings, as it remains the only legal tender in the country. This requirement also applies to transport services, electronic products, and telecommunication services.

The bank plans to check destabilization

By reiterating these regulations, the central bank aims to maintain control over the country’s monetary system and prevent potential destabilization caused by the use of foreign currencies. It underscores the importance of using the national currency, the Tanzanian shilling, for domestic transactions and maintaining price stability within the local economy.

The Tanzanian government’s approach aligns with its efforts to foster a robust and self-sustaining economy. By encouraging the use of the national currency, the authorities aim to strengthen the Tanzanian shilling, promote financial inclusion, and ensure a healthy and stable financial system that benefits the country’s citizens.

While the Bank of Tanzania’s directive restricts the use of foreign currencies in most domestic transactions, it also recognizes the importance of the tourism sector. Allowing tourists and non-resident customers to pay in foreign currencies for tourism-related services enables a seamless experience for visitors while supporting the growth of the tourism industry, a vital contributor to Tanzania’s economy.

Except for certain tourism-related services, all other goods and services should be quoted and paid for in Tanzanian shillings, the country’s sole legal tender. By upholding these regulations, the central bank aims to promote economic stability, safeguard the financial system, and encourage the use of the national currency within the Tanzanian economy.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Tanzania warns against foreign currency pricing

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月26日 12:51
Next 2023年6月26日 15:41

Related articles

  • Binance Implements Token Burn Initiative, Significantly Reducing LUNC Supply

    TL;DR Breakdown Binance has conducted its 11th token burn, resulting in the destruction of 2.65 billion Terra Classic (LUNC) tokens. The burn initiative aims to decrease the total token supply and enhance the value and stability of the LUNC ecosystem. Description In a recent move to address the supply dynamics of Terra Classic (LUNC) tokens, Binance, the world’s largest cryptocurrency exchange, has executed its 11th token burn event. This initiative resulted in the destruction of a substantial 2.65 billion LUNC tokens, marking a significant reduction in the overall supply. Binance‘s commitment to reducing the token supply … Read more In a recent move to address the supply dynamics of Terra Classic (LUNC) tokens, Binance, the world’s largest cryptocurrency exchange, has executed its 11th token burn event. This initiative resulted in the destruction of a substantial 2.65 billion LUNC tokens, marking a significant reduction in the overall supply. Binance‘s commitment to reducing the token supply and the subsequent positive market response reflects the exchange’s efforts to enhance the value and stability of the LUNC ecosystem.  Contents hide 1 Binance’s 11th LUNC…

    Article 2023年7月5日
  • Federal Reserve takes enforcement action against FTX-linked Farmington State Bank over stablecoin dealings

    TL;DR Breakdown The Federal Reserve took enforcement action against Farmington State Bank for improperly changing its business plan related to stablecoins. Farmington has ties to the crypto industry, including an investment from Alameda and a partnership to issue a US+ Stablecoin. The bank consented to the Federal Reserve order, with a related transaction expected to close by August 31, 2023. Description The Federal Reserve has announced an enforcement action against Farmington State Bank, alleging that it improperly changed its business plan without informing the Fed. The action centers around Farmington’s involvement in designing IT infrastructure to facilitate the issuance of stablecoins. Allegations of improper business plan changes: A look at the Fed Reserve claims According to … Read more The Federal Reserve has announced an enforcement action against Farmington State Bank, alleging that it improperly changed its business plan without informing the Fed. The action centers around Farmington’s involvement in designing IT infrastructure to facilitate the issuance of stablecoins. Allegations of improper business plan changes: A look at the Fed Reserve claims According to the Federal Reserve’s Thursday filing, Farmington…

    Article 2023年8月18日
  • CoinGecko Introduces Index for Crypto Tokens Viewed as Securities

    TL;DR Breakdown CoinGecko has introduced a new index, “Top Alleged Securities Coins,” that tracks crypto tokens viewed as likely securities by the SEC. The index was constructed using tokens deemed securities by the SEC in past lawsuits. The SEC’s recent lawsuits against crypto exchanges have increased the number of tokens it views as securities to 68. CoinGecko’s index lists 24 of these, covering at least $84.9 billion of the total crypto market capitalization. Description In a groundbreaking move, CoinGecko, a leading cryptocurrency data platform, has launched a new index that tracks the largest crypto tokens perceived as likely securities by the United States Securities and Exchange Commission (SEC). The index, dubbed “Top Alleged Securities Coins,” organizes the selection of crypto assets by market capitalization. Contents hide 1 The Emergence … Read more In a groundbreaking move, CoinGecko, a leading cryptocurrency data platform, has launched a new index that tracks the largest crypto tokens perceived as likely securities by the United States Securities and Exchange Commission (SEC). The index, dubbed “Top Alleged Securities Coins,” organizes the selection of crypto assets by…

    Article 2023年8月7日
  • Decrypting the dark side of crypto syndicate investments

    Description In the crypto industry, there’s a looming danger that investors really should not overlook – contract-free decentralized autonomous organization (DAO) venture capital (VC) investment. The story of R-930 Capital and its CEO, Richard Asamoah Boateng, shines a light on this perilous path. Contents hide 1 The words of victims 2 The trail of evidence 3 … Read more In the crypto industry, there’s a looming danger that investors really should not overlook – contract-free decentralized autonomous organization (DAO) venture capital (VC) investment. The story of R-930 Capital and its CEO, Richard Asamoah Boateng, shines a light on this perilous path. Contents hide 1 The words of victims 2 The trail of evidence 3 The pattern of misbehavior 4 The CEO’s response The words of victims More than a hundred anonymous victims have exclusively shared with Cryptopolitan their experiences dealing with R-930 Capital, a crypto investment firm, describing a pattern of investments being redirected for personal gain, rather than equitable distribution among investors. One aggrieved person explained that R-930 Capital’s modus operandi involved marketing investment opportunities in blockchain and cryptocurrency…

    Article 2023年8月14日
  • Major League Baseball hosts its first metaverse game

    TL;DR Breakdown Major League Baseball thrills fans to its new metaverse game day view. The digital realm and its growing role in sports. Description In a groundbreaking move, Major League Baseball (MLB) will treat its fans to an extraordinary experience as they will watch a real-world MLB game unfold in 3D within the metaverse. This technological marvel will be unveiled by Improbable, a metaverse technology company, during a regular season Major League Baseball game between the Tampa Bay Rays … Read more In a groundbreaking move, Major League Baseball (MLB) will treat its fans to an extraordinary experience as they will watch a real-world MLB game unfold in 3D within the metaverse. This technological marvel will be unveiled by Improbable, a metaverse technology company, during a regular season Major League Baseball game between the Tampa Bay Rays and the Los Angeles Angels. While the physical game will take place at Tropicana Field in St. Petersburg, Florida, fans from across the globe have the chance to witness the action in an entirely new dimension. Improbable’s role in the Major League Baseball…

    Article 2023年9月21日
TOP