The Bank of 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
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.
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
Charles Nyirabu – 1974 to 1989
Gilman Rutinhinda – 1989 to 1993
Idris Rashidi – 1993 to 1998
Daudi Ballali – 1998 to 8 January 2008
Benno Ndulu – 8 January 2008 to 23/11/2017
Florens Luoga – 23 November 2017
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. The bank also has its own training institute located in Mwanza
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