EABC Commends Dar On Treasury Bills, Bonds

THE East African Business Council (EABC) has lavished praise on President Samia Suluhu Hassan for allowing East Africans to invest in treasury bills and bonds security markets.

The apex body of the private sector in the region said in a statement that it appreciated such a bold and visionary move by Tanzania’s government, through the central bank on issuing the new Foreign Exchange Regulations 2022 under the Foreign Exchange Act Cap 271, which will attract and boost cross-border investments needed to generate capital and build the economy in Tanzania and the East African region at large.

According to EABC, the regulations permit residents of the East African Community (EAC) and Southern African Development Community (SADC), to invest in Treasury bills and bonds.

The regulations also permit a person residing in Tanzania to invest in the prescribed territory.

The EAC Monetary Union Protocol signed on November 30, 2013 provides for cooperation in monetary and fiscal matters to establish monetary stability and facilitate economic integration.

“The East African Business Council is dedicated to partnering with the Government of the United Republic of Tanzania to promote the free movement of capital and payments, as prescribed in the EAC Common Market Protocol (2010),” read part of the statement.

Treasury bills are short-term government securities, which are issued at discount and mature in less than a year. Treasury bills are used as a primary instrument for raising funds to meet temporary budget deficit and regulate money supply while treasury bonds are long-term debt instruments with a maturity period of more than one year and pay interest on semiannual basis. Treasury bonds issued by the Bank of Tanzania are in six maturities: 2, 5, 7, 10, 15 and 20 years. They are issued at fixed interest rate (coupon).