BoT issues new regulations for bureau de change

Dar es Salaam. The Bank of Tanzania (BoT) has issued new Foreign Exchange (Bureau de Change) Regulations, which revoke the Foreign Exchange (Bureau de Change) Regulations, 2019.

The Central Bank Governor, Emmanuel Tutuba, said in a statement that the new regulations have been issued under the Foreign Exchange Act through Government Notice No. 730 of 2023, published in the Government Gazette on October 6, 2023.

"The Regulations have introduced, among other things, three classes of Bureau de Change licences, which are classes A, B, and C," he said.

He said Class A bureau de change shall be foreign or locally owned and allowed to open branches anywhere in the country.

He said foreign-owned class A bureau de change shall be required to have a minimum capital of Sh1 billion, while locally owned class A bureau de change shall be required to have a minimum capital of Sh500 million.

"Class A bureau de change shall be allowed to conduct spot buying and selling of foreign exchange, money remittance transactions, carry out business as agents of banks, insurance, mobile network operators, or any other financial-related activity as may be approved by the Bank of Tanzania," he said.

He said class B bureau de change is a bureau de change with local shareholding and shall not be allowed to open branches. It shall be required to maintain a minimum capital of Sh200 million.

According to Mr Tutuba, class B bureau de change shall be allowed to conduct only spot buying and selling of foreign exchange with a single outlet, carry out business as agents of banks, insurance, mobile network operators, or any other financial-related activity as may be approved by the Bank of Tanzania.

Regarding class C bureau de change, the BoT governor said they can be established in any hotel of a rank of three stars and shall be issued exclusively to a hotel or hotel owner. They shall not be required to maintain minimum capital.