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Govt reiterates ban on forex use in domestic transactions

25th May 2012
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Finance Deputy Minister, Janet Mbene

The government has reiterated its resolve to ban the use of foreign currencies, especially the American dollar, in buying and selling goods and services in the country.

“We are studying the trend and we’ll talk to the business community involved in such businesses and encourage them to start using our Tanzanian shilling instead of the US the dollar in their transactions,” said Finance Deputy Minister Janet Mbene.

She made the remarks in Arusha yesterday after opening a two-day seminar on financial markets and financial institutions.

The minister stated that businesspeople involved in the use of forex in domestic transactions were violating the law.

She said the country’s law did not allow people and traders to transact in foreign currencies because that contributed to the devaluation of the Tanzanian shilling against major international currencies.

“It is not allowed for people and businesspeople to use foreign currencies in buying and selling goods and services in the local market,” she said.

Mbene decried the ongoing trend, saying it had a negative impact on the country’s socio-economic development.

“As a government, we still don’t know the amount of dollars in the market right now and this is the reason that drives us, in collaboration with the Bank of Tanzania, to carry out a study on that,” she said, adding: “This will help us know the magnitude of the problem and come up with recommendations to solve it.”

The deputy minister, however, said the state of Tanzania’s economy wasn’t in such a bad state as to make people start using dollars in selling and buying.

She said the ban on the use of foreign currencies would help boost the country’s economy.

Earlier, opening the meeting, which involved over 200 financial experts, the deputy minister said: “This meeting is timely and will help improve the country’s financial.

SOURCE: THE GUARDIAN
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