The shortage of foreign exchange in Tanzania has not reached an alarming rate as claimed by some stakeholder, Bank of Tanzania (BoT) Governor Emmanuel Tutuba has stated.

Speaking during a meeting with bureau de change owners in the country on July 17, 2023, Governor Tutuba admitted that there was shortage of US dollars in many countries in the world. However, he dismissed as uncalled for any panic about the matter in Tanzania.

“The Bank of Tanzania has been and will continue taking measures aimed at ensuring that the shortage of foreign currency, which is global, does not affect our economy severely,” he said.

He named some reasons behind the shortage of foreign currency, especially the US dollar which accounts for almost 83 percent of international trade, as including the effects of the Covid-19 pandemic, ongoing war between Russia and Ukraine, climatic changes and monetary policies in the US.

The above factors have led to increase commodity prices of various goods and services, including transportation, and hence increasing the demand for US dollars; disruption of the global supply chain, and a rush to invest dollars in the US market.

Governor Tutuba said the Central Bank will continue to make close follow up on the availability of dollars and other foreign currencies and take appropriate measures to ensure the country’s economy is not adversely affected by this.

He further said, despite the ongoing shortage globally, Tanzania has enough foreign reserves capable of meeting the country’s obligations for four months. As of July 14, 2023 Tanzania’s foreign reserves amounted to $5.55bn, which is an import cover for about five months.

“These achievements should not make us relax. This is behind the calling of this meeting today to discuss better ways of ensuring that people in search of foreign exchange get it,” the Governor told over 70 owners of bureaus de change in the country.

He urged them to continue delivering services in accordance with the laws, regulations and guidelines in place for the good of the country’s economy.

“By so doing, we shall be supporting Her Excellency Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania quest for increased economic growth in the country that benefits the majority of Tanzanians,” he said.

The meeting was aimed at sharing ideas on better ways to increase efficiency in availability of foreign exchange especially currently when the world is facing US dollar crunch.