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

  • Feds chairman Jerome Powell acknowledges Bitcoin’s resilience as a long-term asset

    TL;DR Breakdown Jerome Powell, the Federal Reserve (FED) chairman, favors strict federal regulation of stablecoins. Powell considers stablecoins a type of money and believes that cryptos like Bitcoin will endure. Powell and the House Financial Services Committee support legislation In order to regulate stablecoin supply and stop the overproduction of state-level private money. Description Federal Reserve Chairman Jerome Powell, the highest official in the United States monetary system, has publicly acknowledged Bitcoin’s long-term viability, which comes as something of a surprise. The fact that one of the world’s most powerful financiers has taken notice of Bitcoin and other cryptocurrencies is yet another indication of their rising legitimacy in the … Read more Federal Reserve Chairman Jerome Powell, the highest official in the United States monetary system, has publicly acknowledged Bitcoin’s long-term viability, which comes as something of a surprise. The fact that one of the world’s most powerful financiers has taken notice of Bitcoin and other cryptocurrencies is yet another indication of their rising legitimacy in the conventional financial system. The Chairman’s endorsement is a watershed moment for Bitcoin and…

    Article 2023年6月25日
  • Why is JPMorgan dissing Ethereum and calling it disappointing?

    TL;DR Breakdown JPMorgan criticizes Ethereum’s Shanghai upgrade, terming its aftermath as disappointing. Despite a 99% drop in energy consumption due to the shift from PoW to PoS, Ethereum’s supply is shrinking and network activity has declined. Key metrics, like daily transactions and active daily addresses, have decreased post-upgrade. Description The much-hyped Shanghai upgrade to Ethereum, the world’s top smart contract blockchain, was supposed to be a game-changer. But JPMorgan has some bones to pick, and they aren’t mincing their words. In a recently released research report, JPMorgan analysts led by Nikolaos Panigirtzoglou took the gloves off and landed a critical punch, labeling the aftermath … Read more The much-hyped Shanghai upgrade to Ethereum, the world’s top smart contract blockchain, was supposed to be a game-changer. But JPMorgan has some bones to pick, and they aren’t mincing their words. In a recently released research report, JPMorgan analysts led by Nikolaos Panigirtzoglou took the gloves off and landed a critical punch, labeling the aftermath of the upgrade as, quite frankly, disappointing. Here’s a deep dive into the bank’s concerns and what this…

    Article 2023年9月23日
  • Doubts grow on necessity of Fed’s rate increases

    Description Eyes are on the Federal Reserve as speculation intensifies over its interest rate decisions. Recent indicators from the July meeting insinuate that although the battle against inflation is far from over, there’s an emerging skepticism surrounding the urgency for continual rate hikes. A Balancing Act of Risks Fed officials, while unanimous in backing a modest … Read more Eyes are on the Federal Reserve as speculation intensifies over its interest rate decisions. Recent indicators from the July meeting insinuate that although the battle against inflation is far from over, there’s an emerging skepticism surrounding the urgency for continual rate hikes. A Balancing Act of Risks Fed officials, while unanimous in backing a modest rate increase, signaled they might be reaching the twilight of this monumental rate-hiking phase. But there’s a catch: concerns abound about the potential repercussions of “overtightening” the monetary policy. Essentially, they’re caught in a high-wire act of moderating the economy without pushing it over the edge. Market reactions were swift and stark. Following the buzz around the Fed’s tone of caution, US markets took a hit….

    Article 2023年8月18日
  • UK Proposes ‘Crypto Tsar’ role in ambitious bid to lead global crypto regulation

    TL;DR Breakdown The UK proposes the creation of a “Crypto Tsar” to oversee crypto regulation. Cryptocurrencies are deemed not to pose a systemic risk but require careful monitoring as they scale. The UK aims to avoid falling behind other countries in crypto regulation and seeks legal clarity. The Crypto and Digital Assets All Party Parliamentary Group (APPG) has released a comprehensive report today outlining 53 key recommendations for regulating cryptocurrencies in the United Kingdom. To establish the nation as a global hub for the burgeoning industry, the party has suggested creating a new role, the “Crypto Tsar,” to coordinate efforts and ensure a consistent approach to crypto regulation. The report recognizes that cryptocurrencies do not pose any systemic risk. However, it urges the government to closely monitor the industry’s growth and take necessary risk management measures as it scales. The party acknowledges the risk of falling behind other countries in the race to regulate the crypto sector and advises the government to provide legal and regulatory clarity within the next 12 to 18 months. Finding a balance between consumer protection…

    Article 2023年6月10日
  • Uniswap lawsuit over fraudulent token sales dismissed by federal judge

    TL;DR Breakdown A federal judge in New York dismissed a class-action lawsuit against decentralized exchange Uniswap, ruling that the platform was not liable for fraudulent token sales conducted on it. The judge emphasized that due to Uniswap’s decentralized nature, the identities of fraudulent token issuers were unknown, leaving the plaintiffs with no identifiable defendant to blame for their losses. Description A federal judge in New York has dismissed a class-action lawsuit against Uniswap, ruling that the decentralized exchange was not liable for fraudulent token sales conducted on its platform. The decision has far-reaching implications for the DeFi sector and the application of existing securities laws. The lawsuit had accused Uniswap of being complicit in fraud … Read more A federal judge in New York has dismissed a class-action lawsuit against Uniswap, ruling that the decentralized exchange was not liable for fraudulent token sales conducted on its platform. The decision has far-reaching implications for the DeFi sector and the application of existing securities laws. The lawsuit had accused Uniswap of being complicit in fraud and violating securities laws by facilitating the…

    Article 2023年8月31日
TOP