Bank of Tanzania
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| Headquarters | Dar es Salaam |
|---|---|
| Coordinates | 6°48′57″S 39°17′39″E / 6.81583°S 39.29417°ECoordinates: 6°48′57″S 39°17′39″E / 6.81583°S 39.29417°E |
| Governor | Benno Ndulu |
| Central bank of | Tanzania |
| Currency |
Tanzanian shilling TZS (ISO 4217) |
| Website | www.bot-tz.org |
The Bank of Tanzania (Swahili: Benki Kuu ya Tanzania) is the central bank of the United Republic of Tanzania. It is responsible for issuing the national currency, the Tanzanian shilling.
The bank was established under the Bank of Tanzania Act 1965. However, in 1995, the government decided that the central bank had too many responsibilities, and was thus hindering its other objectives. As a result, the government introduced the Bank of Tanzania Act 1995, which gave the bank the single objective of monetary policy.
It is governed by a Board of Directors consisting of ten people, four of whom are ex officio members which have three advisory committees that can assist them. The bank is headed by its Governor, assisted by three deputy governors in Administration, Economic and financial policies and Financial stability.
The Bank of Tanzania was chartered by the first parliament of Tanzania through the Bank of Tanzania Act of 1965 following the dissolution of the East African Currency Board in 1965. The bank commenced operations on June 14, 1966 and was inaugurated by the first president of the country, Julius Nyerere.
Immediately after its formation, the Arusha declaration was proclaimed and the traditional roles of the bank was modified to accommodate for the changed in economic system. The lack of competition in the financial markets meant the bank had to reorient its role in the economy. After 1971 The Exchange Control Ordinance and Import Control Ordinance allowed the bank to apply the following plans:
With increased villagisation during the time period and the continued weakness in the balance of payment of the bank, the Bank of Tanzania act was amended in 1978 to give the bank more control. The Act shifted the responsibility of financial planning from the ministry of finance and planning directly to the bank.
Following the liberalization of the economy in 1995 and the rapid rate of inflation and devaluation in the Tanzanian shilling, the Bank of Tanzania act of 1995 was passed which clarified the primary objective of the central bank to establish a monetary environment to ensure Price stability. The act was further clarified in 2006 and is the current governing act for the bank.
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