Thursday, June 14, 2018

Tanzania's liquidity stimulation strategies pay off

Finance and Planning Minister, Dr Phillip

Finance and Planning Minister, Dr Phillip Mpango 

By Samuel Kamndaya @TheCitizenTZ

Dodoma. The government’s strategies in stimulating liquidity in the economy yielded positive results last year, with broad money increasing by 8 per cent in 2017, the Finance and Planning Minister told the Parliament on Thursday, June 14, 2018.

Presenting the Economic Survey Report for 2017 and the National Development Plan for 2018/19 in Parliament, the Finance and Planning Minister, Dr Phillip Mpango said during the year ending December 2017, broad money (M3) in the market reached Sh24.7 trillion, up from Sh22.88 trillion in 2016.

Liquidity refers to how easily assets can be converted into cash.

M3 refers to all forms of money – including narrow money, savings, time deposits and foreign currency – that can be easily converted into cash.

“The improvement was mainly due to various measures undertaken by the government – through the Bank of Tanzania – to increase liquidity in the financial sector,” said Mr Mpango.