The Tanzanian government has denied reports that Kenyan companies are now receiving Tanzanian dollars to meet their obligations, writes the Tanzanian Daily News on March 6.
Permanent Under Secretary of the Ministry of Finance and Planning Lawrence Mafuru said yesterday in Dar es Salaam that foreign exchange trading in the country is governed by the Foreign Exchange Law and Regulations.
“The central bank is closely monitoring the dollar shortage situation in neighboring countries to make sure that black markets for foreign exchange do not burst and cause problems in the country.”emphasized.
According to the Bank of Tanzania’s February Monthly Economic Review, the country’s official foreign reserves fell to $4,807.8 million at the end of January this year, down from $5,177.2 million, but enough to cover 4.3 months of imports, in line with the country’s benchmark of not less than four months.
Kenya is currently facing a severe dollar deficit after its foreign exchange reserves fell to a nearly 10-year low, breaking a critical four-month import hedge after huge foreign debt payments.
Kenyan commercial banks are reportedly running out of US dollars, making it difficult for general goods producers and importers to meet their obligations.
As a result, the Central Bank of Kenya ordered commercial banks to limit the amount of dollars they lend.
Source: Rossa Primavera
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