Bank of Tanzania

Bank of Tanzania
Benki Kuu ya Tanzania

Headquarters	Dar es Salaam
Coordinates	6°48′57″S 39°17′39″E / 6.81583°S 39.29417°E / -6.81583; 39.29417Coordinates: 6°48′57″S 39°17′39″E / 6.81583°S 39.29417°E / -6.81583; 39.29417
Governor	Benno Ndulu
Central bank of	Tanzania
Currency	Tanzanian shilling TZS (ISO 4217)
Website	www.bot-tz.org

Head quarters of the Bank of Tanzania in Dar es salaam

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.

History

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.^[1]^[2] The bank commenced operations on June 14 1966 and was inaugurated by the first president of the country, Julius Nyerere.^[3]

Arusha declaration

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:^[4]

The Annual Finance and Credit plan allowed the bank to freely control interest rates and was the main act that allowed the bank to administer monetary policy
The Foreign Exchange Plan to control the use of foreign exchange to protect national interests and protect the local currency from devaluation

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.^[5]

Liberalization

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.^[6] The act was further clarified in 2006 and is the current governing act for the bank.^[7]

Organizational structure

Incumbent Bank of Tanzania Governor Benno Ndulu

Board of Directors

The Bank of Tanzania has a board of directors consisting of 10 people. Four of the members are directly appointed by the president. The ministry of Finance and the Principal secretary to the treasury of the Revolutionary Government of Zanzibar also appoint a member each to the board.

The current board composition consists of the:^[8]

Governor, who is the chairman of the board
Three Deputy Governors, whose roles are determined by the Governor
Representative from the ministry of finance and planning
Four non-executive directors, and
the Secretary to the board

List of Governors

Edwin Mtei – 1966 to 1974^[9]
Charles Nyirabu – 1974 to 1989
Gilman Rutinhinda – 1989 to 1993
Dr. Idris Rashidi – 1993 to 1998
Dr. Daudi Ballali – 1998 to 8 January 2008
Prof. Benno Ndulu – 8 January 2008 to present

Branch Network

Mwanza

Arusha

Mbeya

Mtwara

Zanzibar

Bank of Tanzania Branch Network with Head office in Dar es Salaam

The bank is head quartered in Dar es salaam in the heart of the financial district of the city and also maintains branches in the following cities: Arusha, Mbeya, Mwanza, Mtwara, Zanzibar. The banks latest branch was opened in Mtwara due to the recent boom in economic growth in the southern regions.^[10] The bank also has its own training institute located in Mwanza.^[11]

Financial Inclusion

The Bank is active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion. It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the Maya Declaration^[12] during the 2011 Global Policy Forum held in Mexico.

In 2016 the central Bank Chief Professor Benno Ndulu renewed the bank's commitment by launching the National Financial Inclusion Framework (NFIF),2016-2020. The objective is to reduce the number vulnerable households due to low unstable incomes, low confidence and self-exclusion from the current 28.2 per cent.^[13]

Criticism

Recently, Bank of Tanzania was involved in an incident which resulted in an audit of its External Arrears Account. About Tshs 133 billion were discovered to have been lost in 2005 through dubious payments. As a result, the President of Tanzania fired the bank's Governor, D. T. S. Ballali, on 9 Jan 2008. Professor Benno Ndullu was appointed to take this position on the same day.^[14]

References

↑ Masson, Paul R.; Pattillo, Catherine (2004-11-30). The Monetary Geography of Africa. Brookings Institution Press. ISBN 0815797532.
↑ "The Bank of Tanzania Act | AACB". www.aacb.org. Retrieved 2016-09-29.
↑ "Bank of Tanzania: About the Bank - History of the Bank of Tanzania". www.bot.go.tz. Retrieved 2016-09-29.
↑ Ndulu, B. J.; Mutalemwa, Charles K. (2002-01-01). Tanzania at the Turn of the Century: Background Papers and Statistics. World Bank Publications. ISBN 9780821350614.
↑ "Bank of Tanzania - Fortune of Africa Tanzania". fortuneofafrica.com. Retrieved 2016-09-29.
↑ "The Bank of Tanzania Act | AACB". www.aacb.org. Retrieved 2016-09-29.
↑ "Central Bank Regulations/Guidelines". www.bankm.com. Retrieved 2016-09-29.
↑ "Bank of Tanzania: About the Bank - Board of Directors". www.bot.go.tz. Retrieved 2016-09-29.
↑ "Bank of Tanzania: About the Bank - Former Bank of Tanzania Governors and Deputy Governors". www.bot.go.tz. Retrieved 2016-09-29.
↑ Lindi, FLORENCE MUGARULA in. "Central bank opens sixth branch in Mtwara". dailynews.co.tz. Retrieved 2016-09-29.
↑ "Bank Of Tanzania Training Institute , Mwanza, Tanzania | africazip.com". www.africazip.com. Retrieved 2016-09-29.
↑ http://www.prnewswire.com/news-releases/maya-declaration-urges-financial-inclusion-for-worlds-unbanked-populations-130887928.html
↑ "Tanzania: Central Bank Launches Financial Inclusion Scheme". AllAfrica.com. 23 February 2016. Retrieved 20 March 2016.
↑ "Tanzania in bank scandal sacking". BBC. 10 February 2008. Retrieved 20 March 2016.

External links

Central banks

Global

Global	Bank for International Settlements Basel Committee on Banking Supervision Financial Stability Board

By continent

Africa	Bank of Central African States Central Bank of West African States Bank of Algeria National Bank of Angola Bank of Botswana Bank of the Republic of Burundi Bank of Cape Verde Central Bank of the Comoros Central Bank of the Congo Central Bank of Djibouti Central Bank of Egypt Bank of Eritrea National Bank of Ethiopia Central Bank of The Gambia Bank of Ghana Central Bank of the Republic of Guinea Central Bank of Kenya Central Bank of Lesotho Central Bank of Liberia Central Bank of Libya Central Bank of Madagascar Reserve Bank of Malawi Central Bank of Mauritania Bank of Mauritius Bank Al-Maghrib (Morocco) Bank of Mozambique Bank of Namibia Central Bank of Nigeria National Bank of Rwanda Central Bank of São Tomé and Príncipe Central Bank of Seychelles Bank of Sierra Leone Central Bank of Somalia Bank of Somaliland South African Reserve Bank Bank of South Sudan Central Bank of Sudan Central Bank of Swaziland Bank of Tanzania Central Bank of Tunisia Bank of Uganda Bank of Zambia Reserve Bank of Zimbabwe

Americas	Central Bank of Argentina Central Bank of Aruba Central Bank of The Bahamas Central Bank of Barbados Bermuda Monetary Authority Central Bank of Brazil Bank of Canada Central Bank of Chile Bank of the Republic (Colombia) Central Bank of Cuba Central Bank of Curaçao and Sint Maarten Eastern Caribbean Central Bank Cayman Islands Monetary Authority Central Bank of Ecuador Bank of Guatemala Bank of the Republic of Haiti Central Bank of Honduras Bank of Jamaica Bank of Mexico Central Bank of Nicaragua Central Reserve Bank of Peru Central Bank of Suriname Central Bank of Trinidad and Tobago Federal Reserve System (United States) Central Bank of the Uruguay Central Bank of Venezuela

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Europe	European Central Bank (Eurosystem) National Bank of the Republic of Abkhazia Bank of Albania Central Bank of Armenia National Bank of Austria Central Bank of Azerbaijan National Bank of the Republic of Belarus National Bank of Belgium Central Bank of Bosnia and Herzegovina Bulgarian National Bank Croatian National Bank Central Bank of Cyprus Czech National Bank Danmarks Nationalbank (Denmark) Deutsche Bundesbank (Germany) Bank of England Bank of Estonia Bank of Finland Banque de France National Bank of Georgia Bank of Greece Hungarian National Bank Central Bank of Iceland Central Bank of Ireland Banca d'Italia Central Bank of Kosovo Bank of Latvia Bank of Lithuania Central Bank of Luxembourg National Bank of the Republic of Macedonia Central Bank of Malta National Bank of Moldova Central Bank of Montenegro De Nederlandsche Bank Norges Bank Central Bank of the Turkish Republic of Northern Cyprus National Bank of Poland Banco de Portugal National Bank of Romania Central Bank of Russia National Bank of Serbia National Bank of Slovakia Bank of Slovenia Gosbank (Soviet Union) Bank of Spain Swedish National Bank Swiss National Bank Central Bank of the Republic of Turkey National Bank of Ukraine

Oceania	Reserve Bank of Australia Reserve Bank of Fiji Reserve Bank of New Zealand Bank of Papua New Guinea Central Bank of Samoa Central Bank of Solomon Islands National Reserve Bank of Tonga Reserve Bank of Vanuatu

Policies and implementation

Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel II Basel III Basel 4

Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund

Bretton Woods system

International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency

Lists

List of central banks Central banks and currencies of Africa Central banks and currencies of Asia-Pacific Central banks and currencies of the Caribbean Central banks and currencies of Europe Central banks and currencies of Central America and South America

Names in italics indicate non-sovereign (dependent) territories, former countries, or states with limited recognition

Tanzania articles

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