Tanzania Tightens Foreign Currency Exchange Controls Through New Regulations

Before starting your vacation to another part of the world, make sure to exchange your dollars for the best conversion rate and cheapest fees. While it is true that there are ATM’s in most tourist destinations, you will gain better rates from Knightsbridge FX because it is guaranteed to beat the rates of competitors including banks.

There are countries with restrictions on its currency because of political and economic conditions and banks may not be able to access the currency. One example is Tanzania that has tightened currency controls through new regulations on foreign exchange bureaus. According to authorities, this is part of their ongoing battle against money laundering and currency speculation.

Months before, the government has revoked the licenses of foreign exchange bureaus and temporarily shut down a newspaper for publishing unofficial data on exchange rates. According to President John Magufuli, the central bank has previously licensed too many bureaus and some of them have broken the laws.

Since the start of the year, the Tanzanian shilling has been broadly stable. In April, the International Monetary Fund (IMF) said that the true value of the currency is broadly in line with fundamentals. However, IMF has warned of serious weaknesses in official data. There are indications of a slower pace of economic activity contrary to what is being reported by the government.

When the foreign exchange bureaus were closed in February, the bulk of foreign currency trading was handled by commercial banks. About $10 million are traded daily in the commercial banks because of the reduced number of Forex bureaus. This led to more transparency in the market and improved the inflow of hard currency.

With new regulations, it will be more difficult for foreign exchange bureaus to operate. Most of the transactions will shift to commercial banks. Minimum capital for Forex bureaus was also raised to 1 billion Tanzanian shillings.

Many customers continue to use the services of Knightsbridge FX because of the consistent currency rates that beat banks. There are also services like free same day transfers and professional proactive service. Best rates are guaranteed with more personal attention to ensure 100% satisfaction.