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Foreign Exchange

What does it offer? Competitive forex rates unmatched in the market. Comment commentIcon. The closure of foreign exchange shops that operated illegally has created an opportunity for banks to capitalise by opening windows for the service and generate income.

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In an exclusive interview with the Daily News yesterday in Dar es Salaam over the weekend, Mkombozi Bank Plc, Managing Director, Mr Respige Kimati said the government move to uproot unlawful forex shops is commendable and has created stability of the foreign exchange business in the country. He noted further that with the government move, the Tanzanian shilling has improved after having a good system to monitor and control foreign exchange and the Tanzanian shilling trading.

He said if the country does not have control over foreign exchange markets, people may be buying foreign currency without any intention to make foreign transactions to import goods and services. It may be that they were taking money out of the country which is bad to economy," he added.

He said in the past when there were many bureau de change shops operating in the country for the banking sector it was not a big business due to unfair competition created by some forex shops that operated unlawfully. There may have been speculation and that is why the government intervened," he noted. By submitting above, you agree to our privacy policy.

With this decision, the government is able to monitor and control foreign exchange trading because every dollar transaction must have a backup of what is going to do in the economy activity. Mr Kimati said to a large extent the bureau de change plays a huge roll of stabilising currency or setting the value for money according to high demand.

He said in the local market there may be demand for dollars but there are no economic activities that are not beneficial to the nation. He added that the dollar trading should support economic activities. He also said that there was a positive view of foreign exchange coming out without supporting economic activities, which is why there has been instability in the exchange for a long time. So it was important that foreign exchange trading did not come out without supporting an economic activity, that is why there has been stability in the exchange for a very long time," said added.

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