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Banking Operations

Currency Department

1.0  Currency Department

The Bank is mandated by the Bank of Tanzania Act, 2006 section 26 to have the sole right to issue bank notes and coins in the country; thus it shall be the only legal tender in Tanzania. Subsequently, Currency department is responsible in the designing and ordering of banknotes and coins to meet the country’s demand; this is one of the main functions of the department.

 The Department has an objective to ensure that clean money policy is achieved by making sure that all regions are supplied by clean banknotes and coins. The Bank has four branches namely Arusha, Zanzibar, Mwanza and Mbeya. Bank of Tanzania Head Quarters is in Dar Es Salaam whereby the Bank supplies clean banknotes and coins while the collected unserviceable currency are destroyed.

 It is the responsibility of the department to ensure that there is always an adequate stock of banknotes and coins available in all denominations and that there is a good distribution system to reach the various sectors of the Tanzania economy.

1.1           Functions of Currency Department

1.1.1         Distribution of Currency

Distribution of banknotes and coins to all Bank of Tanzania branches and safe custody centre to ensure enough cash needed for circulation is readily available. Aim is to ensure availability of adequate currency stocks in the strong rooms and Cash Centres.

1.1.2  To observe clean money policy

The department takes care of all banknotes distributed in circulation ensuring all unserviceable banknotes are taken out from the circulation and only clean counted and sorted banknotes are issued back to the public.

1.1.3         Redemption of mutilated notes.

Mutilated note is a banknote that has been damaged or changed its appearance by accidental or unintentional contact with water, fire, chemicals etc. when these notes are brought to the Bank; they require a close examination on the banknote, features and cause of the damage in order to determine their values. Defaced coins are those which are chipped, melted, distorted or not machine-countable.

Redemption of mutilated banknotes is done under section 29 of the Bank of Tanzania Act 2006:

i)     No person shall be entitled to recover from the Bank the value of any lost, stolen or imperfect bank note, coin or of any banknote   that has been mutilated or of any coin that has been tampered with.

ii)    The circumstances in which and the conditions and limitations upon which, the value of any lost, stolen or imperfect notes or coins, mutilated notes or coins which have been tampered with may be refunded as of grace by the Bank shall be within the   absolute discretion of the Bank.

                    http://www.bot-tz.org/BankingOperations/Currency/CurrencyMuseum.asp

          iii)     Receipt of cash deposit from Commercial Banks, the Intermediate Vault and Branches.

Bank of Tanzania is a banker for commercial bank and the government. It provides a safe and convenient place to store money and also maintain minimum reserves requirements.

iv)      Payment of cash to Commercial Banks, Intermediate Vault and Branches.

The deposits by commercial banks can be withdrawn from their accounts after a request is made to the bank.

                         http://www.bot-tz.org/BankingOperations/Currency/CurrencyEvolution.asp

 

Contacts

          Physical Location:

Offices of the Currency Department are located on the 2nd floor North Tower of the Bank of Tanzania Building along 10 Mirambo Street.

Postal Address
10 Mirambo Street
P.O. Box 2939
Dar Es Salaam

Telephone
+255 22 2235673

E-mail address
Mr. J. C. Rushaka, Manager, Currency

jcrushaka@hq.bot-tz.org