Tanzania enacts measures to limit extensive use of US dollar
Tanzania's Finance Minister, Dr. Mwigulu Nchemba, has issued a directive to reduce the widespread use of the US dollar in domestic transactions to address economic challenges. Starting July 1, 2024, all transactions and advertisements must be conducted in Tanzanian shillings, as stipulated by Section 26 of the Bank of Tanzania Act of 2006.
Dr. Nchemba highlighted the negative impacts of dollarisation, including a shortage of dollars and increased depreciation of the Tanzanian shilling. He urged institutions, including government bodies, to adjust their regulations to comply with this directive, promoting financial stability and economic growth.
Furthermore, the minister emphasized the importance of reducing reliance on imports by fostering domestic production. This measure aims to conserve foreign currency reserves and support the local economy.
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