The Bank of Tanzania (BoT) has ordered businesses operating in the country to stop quoting prices for goods and services in US Dollars, highlighting that doing so is against regulatory requirements and that the recent implementation will relieve pressure on the local currency.
“The government’s directives issued are still valid and should be adhered to at all times,” the central bank said in a notice dated June 20.
“Tourists and non-residents who pay in foreign currencies must provide their identification documents such as passport and certificate of incorporation for companies for proper capturing and classification of statistics,” read part of the notice.
In an effort to lessen their reliance on the US Dollar, Tanzania and India opted to conduct business in their respective local currencies back in May. Stakeholders argued that Tanzania and India would become less reliant on significant global currencies and would foster a stable and productive commercial environment if they promoted trade in local currencies.
Read Also: Kenya Spearheads Movement to Shift from Dollar Dominance
Due to tightening monetary policies globally, several African countries are struggling with falling foreign exchange reserves. Low reserves have compelled nations to reconsider their strategies for balancing trade while surviving future trends.
Nigeria has harmonised its dollar exchange rates in an effort to boost trade revenue in the local currency. In addition, President William Ruto has been outspoken on the issue, urging African leaders to give serious consideration to the possibility of a de-dollarisation of the entire continent in order to lessen its reliance on the super currency.
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“Although there has been the introduction of several regional payment infrastructures in the continent, we lack a single system that seamlessly facilitates trade among our nations, eliminating the obstacles posed by varying currencies,” President Ruto said while speaking at the third Kenya International Investment Conference in Nairobi, a few weeks ago.
“It is imperative that we proactively seek a resolution to the disparities in currencies and the consequential impediments it poses,” Ruto advised.
