Bank of Tanzania sets new rules on foreign exchange trade

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The new forex trading requirements were announced by the governor, Prof Florens Luoga, who said the regulator intervened to foster macroeconomic stability and safeguard stability of the financial system.

TBA Chairman Abdulmajid Nsekela said they have been working in close partnership with BoT to ensure smooth operations and stability in the foreign exchange market. According to him, the circular is in line with the discussions that were held between BoT and TBA. “We thank BoT for the close working partnership,” he told The Citizen which sought to establish the reasons behind the move. The government has in recent years acted to rein on illegal currency trade and at one point carried an extensive crackdown on private bureaus, with most of them closing shop following the crackdown. BoT said it was issuing the new rules under the law that allows the regulator to intervene to foster macroeconomic stability and safeguard stability of the financial system. According to the rules, all foreign exchange transactions from $250,000 per transaction in the retail market shall at all times be traded within the interbank foreign exchange market prevailing quoted prices. A customer will not be allowed to exceed this amount in one day’s trading. The amount of foreign exchange tradable for a given quoted price in the interbank foreign exchange market was revised from a minimum of $250,000 to $50,000. “The revised amount is applicable for the period of six months effective from the date of this Circular,” read the statement.

Bank of Tanzania sets new rules on foreign exchange trade

What you need to know:

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