New rules for operating forex shops in the pipeline-govt

18May 2019
The Guardian Reporter
Arusha
The Guardian
New rules for operating forex shops in the pipeline-govt

THE government is finalising new rules to govern foreign currency exchange businesses in the country, it has been revealed.

CRDB Bank Plc managing director Abdulmajid Nsekela (3rd-R) welcomes Prime Minister Kassim Majaliwa, who was due to open a seminar for the bank’s shareholders at the Arusha International Conference Centre shortly later yesterday. Photo: Guardian Correspondent

Prime Minister, Kassim Majaliwa announced the development here yesterday and appealed to the owners and operators of forex businesses that have been closed by authorities to be patient.

 

The Premier said the preparation of the new rules will be completed “soon” and businesses licensed ready to commerce once again.

The Premier made the statement during the occasion to officially open the 24th CRDB Bank’s annual general meeting and shareholders’ training sessions at the Arusha International Conference Center (AICC) here on Friday.

“We have hatched new mechanism of issuing new operating licences to private foreign exchange shops,” said Majaliwa adding that once the process is finalised the business will resume countrywide.

At the moment, foreign currency exchange is being conducted at local commercial banks across the country.

In another development, the chairperson of the CRDB group’s board of directors, Ally Laay has expressed concern that majority of Tanzanians are not aware of benefits of investing in purchasing shares.

“Most citizens are either not aware or afraid of purchasing stakes from local companies; instead they pour all their resources in perishable investments such as livestock that are always susceptible to diseases, weather elements and other loss inducing natural calamities,” said Laay.

He pointed out that the Dar-es-salaam Stock Exchange (DSE) market records daily sales of 400 million/- while its immediate neighbour across the border, the Nairobi Bourse, lists over 10 billion/- of daily shares picked from the float.

For his part, the CRDB Bank executive director, Abdulmajid Nsekela said the financial institution has grown to 263 branches across the country with over 8000 agents, and plans were underway to have 300 branches and 10,000 agents before the end of this year.

The bank has issued interests worth 16 billion/- to its members as of late last year.

Late last year the state machinery launched special operations in Forex Shops in Arusha, the country’s main tourism hotspot, leading to the closure of such entities pending further investigations after a number of such establishments were found to be ‘operating illegally.’

The same operation took effect in Dar es Salaam this year resulting to the same freezing of privately run, foreign exchange businesses in the commercial capital.

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