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BoT officials make on spot check of forex trade at Namanga
What you need to know:
- The tour comes at a time when the country is facing acute shortage of the dollar, with reports claiming that the presence of people doing forex business unlawfully is likely among the causes of the shortage.
Namanga. Bank of Tanzania (BoT) officials on Thursday made on spot check of foreign exchange business at Namanga border post.
While speaking to the businessmen at the border, the officials said that for any person to operate a foreign exchange shop, they must hold a valid license.
The officials also provided education on how to do forex business legally.
The tour comes at a time when the country is facing acute shortage of the dollar, with reports claiming that the presence of people doing forex business unlawfully is likely among the causes of the shortage.
Doing forex illegally to reduce dollar circulation resulted in a few people owning a lot of money and others illegally taking it across Tanzania’s borders.
Speaking today, the head of investigation unit at BoT, Mr Amri Mbarilaki asked the businessmen to be patriotic and follow the laws and regulations including obtaining a foreign exchange license.
"If we continue with this illegal business, the economy will be damaged," he said.
BoT’s assistant manager of special financial institutions, Mr Omar Msuya said the world is currently in an economic competition that requires foreign currency reserves.
"Although Tanzania still has a dollar reserve, unlike other neighbours, it is important to comply with the law in doing business in foreign currency," he said.
He said the law requires those doing business to register a company and acquire a license, but for those who do not have a license, the punishment is imprisonment of not less than 14 years, a fine, or both.
According to him, President Samia Suluhu Hassan allowed people to open forex shops, and that is the reason why laws and regulations are being improved to ease that business.
On their part, Officer Commanding District (OCD), for Longido Leah Ncheyeki and Border Immigration Officer, Bulugu Edward confirmed that there is illegal foreign currency trading at the border.
Ncheyeki added that apart from that, there are some people who sell counterfeit bills, so the Central Bank should provide education on the business before legal measures are taken.
Nkanga, however, said that there is a shortage of currency exchange shops at the border despite receiving tourists who need to exchange money.
One of the traders, Mr John Kessy, explained that the education provided by BoT will help them continue with their business, as they were previously afraid.
"Due to what happened in previous years, we were afraid of the confiscation of money. Now BOT has removed the hurdles of establishing shops, so people can open shops in accordance with the law," he said.
