The Bank of Tanzania (BoT) has announced a significant relaxation of bureau de change regulations aimed at curbing the ongoing dollar crisis by channeling funds from the informal to the official system.
Speaking during a media training session on the new interest rate-based policy framework in Zanzibar, Dr. Lusajo Mwankemwa, Senior Economist at BoT's Directorate of Economic Research and Policy, highlighted the move's importance in addressing the dollar shortage in the country.
Tanzania presently boasts 18 registered Bureaus de Change, with several awaiting approval in the application pipeline. Dr. Mwankemwa emphasized that the BoT has formulated various policies to tackle the dollar scarcity issue.
He explained, "While Tanzania holds sufficient dollar reserves, a significant portion remains within the informal sector, complicating accessibility. Global crises have impacted Tanzania, prompting measures to alleviate the problem."
The BoT's decision to review bureau de change regulations aims to shift dollars from the informal to the formal sector, facilitating easier access.
Recently, the BoT issued new Foreign Exchange (Bureau de Change) Regulations, superseding those from 2019. These regulations, introduced under the Foreign Exchange Act, delineate three classes of Bureau de Change licenses: classes A, B, and C.
Mr. Deogratius Mnyamani, Senior Principle Bank Examiner at BoT's Microfinance Supervision Department, disclosed that 18 bureau de change have received permits and are operational, with additional applications under review.
The new regulations, effective since October 6, 2023, underscore the government's commitment to address currency-related challenges. They require all licensed bureaux de change to comply with the updated guidelines.
Applicants for bureau de change services must demonstrate a capital reserve of at least Sh1 billion, ensuring compliance with the revised regulations.
The relaxation of bureau de change rules reflects Tanzania's proactive stance in managing its currency dynamics, aiming for a more balanced and accessible financial landscape.