BoT issues new alert on dollar shortage

ARUSHA: The Central Bank of Tanzania (BoT) warned Monday those who are holding foreign currency in secrecy, especially the US dollar, saying they are at risk of incurring huge losses.

Addressing a Working Session of Board Chairpersons and Chief Executives of Public Institutions, BoT Governor Mr. Emmanuel Tutuba, said Tanzania is implementing strategies to strengthen the availability of dollars, insisting that those stashing the global currency might be getting losses instead of profits.

“I urge you to return the money into the local market through proper channels. We will take legal action against all those who will be held using black market to complete their transactions,” the Governor said in Arusha.

Currently, Tutuba has said that the Government is getting US dollars through the usual procedure involving loans, aid, exports and that there is an increase in tourists who have also been contributing to the availability of dollars.

According to the Governor, the shortage of dollars is a global problem. It is a result of a decision by the US to halt the supply into the market as part of a monetary policy to control inflation.

The United States has planned such measures will remain active until next year. It hopes the measures would add the value of the dollar and reduce the inflation of the prices of goods and services in the US.