BoT Deputy Governor,Policy, Economy and Finance, Dr Natu Mwamba
The Bank of Tanzania (BoT) has opened a money distribution centre that will serve financial institutions based in Pemba Island by supplying them with coins as well as increase the frequency of currency exchange to reduce the old ones in circulation.
BoT Deputy Governor, Policy, Economy and Finance, Dr Natu Mwamba, was speaking during a brief ceremony to launch the centre on the island earlier this week.
He said that the central bank has decided to establish the centre in a bid increase availability of coins for the financial institutions on the island and to in the process increase coin circulation to the public and raising their spending power in the process vitalizing the islands economy.
The centre is located at the People's Bank of Zanzibar (PBZ) in Chake Chake, and was graced by the Second Vice President of the Revolutionary Government of Zanzibar, Ambassador Seif Ali Iddi.
According to him, the centre is aimed at ensuring coins are available to ease small transactions that are prevalent in low income communities.
Regions already using the coin vending centres include Mbeya, Mwanza, Arusha and Zanzibar and that preparations are underway to establish one in Sumbawanga as well.
The Vice President said the centre was of great importance as it would speed up the intended revamp of the economy by increasing frequency of transaction to the low income earners who spend in small denominations, mostly coins.
Ambassador Seif also said that the opening of a centre for collecting and storing coins at the PBZ branch was evidence that the bank was strong and was trusted by the BoT and so clients should rest assured that their money is secure and well invested.
On average PBZ has been shipping an average of 4bn/- to 5bn/- cash currencies to and from the island every monthly and during the clove selling season, that amount triples.
The PBZ Managing Director, Juma Amour Mohammed, commended the move by the BoT for selecting his bank as the centre for distributing the coins in the Island.