Currency speculation at work in Tanzania.

[uporoto01]

Last wednesday 23rd i was called by a friend and told if you have extra cash buy dollars for a quick profit,i bought US d 10000 at 1735 each and the next day it had reached 1830 and it being my first time i sold my dollars and made nearly a million shillings in a day.I bought the dollars at various bureau's no questions asked.
To think that there are people who do this everyday and some for a living was a new experience for me and unless BOT puts these bureau's under strict control/supervision the Tanzanian shilling will continue to lose value.There must be people who plow millions maybe billions into this and you can just imagine what it will do to our shilling by creating an artificial dollar shortage and they may also be doing the same for the Euro,Pound and other widely used foreign currencies

 

[i411]

acha uwongo mzee mara ya mwisho mimi nilifikiria kama wewe nikajiona mjanja nikafanya hivyo mbona niliingia hasaraaaa tuuuu. Ngoja nikujulishe biashara ya kubadilisha hela inavyoenda. hizo rate unazoziona wanaziita ni market rate hizo ni za wale wanaonuunua kwa jumla ndo wanapewa hiyo rate. Siye wengine tunaonunua kwa kuunga unga tunapewa rate ambayo kwavyevyote huwezi nuunua leo alafu uuze kesho upate faida. Hapo unataka kutudanganya otherwise kungekuwa na matajiri wengi tuuuuuu.

 

[Mlachake]

acha uwongo mzee mara ya mwisho mimi nilifikiria kama wewe nikajiona mjanja nikafanya hivyo mbona niliingia hasaraaaa tuuuu. Ngoja nikujulishe biashara ya kubadilisha hela inavyoenda. hizo rate unazoziona wanaziita ni market rate hizo ni za wale wanaonuunua kwa jumla ndo wanapewa hiyo rate. Siye wengine tunaonunua kwa kuunga unga tunapewa rate ambayo kwavyevyote huwezi nuunua leo alafu uuze kesho upate faida. Hapo unataka kutudanganya otherwise kungekuwa na matajiri wengi tuuuuuu.

Nakubaliana na wewe mia kwa mia. Kwa Tanzania hizi rates zilivyo kwa Burea De change kuna gap kubwa sana kwa bei ya kununua na bei ya kuuza. Labda ununue uwauzie watu binafsi na sio watu wa bureau de Change tena.

 

[MWENDAKULIMA]

acha uwongo mzee mara ya mwisho mimi nilifikiria kama wewe nikajiona mjanja nikafanya hivyo mbona niliingia hasaraaaa tuuuu. Ngoja nikujulishe biashara ya kubadilisha hela inavyoenda. hizo rate unazoziona wanaziita ni market rate hizo ni za wale wanaonuunua kwa jumla ndo wanapewa hiyo rate. Siye wengine tunaonunua kwa kuunga unga tunapewa rate ambayo kwavyevyote huwezi nuunua leo alafu uuze kesho upate faida. Hapo unataka kutudanganya otherwise kungekuwa na matajiri wengi tuuuuuu.

Nakubaliana na wewe mia kwa mia. Kwa Tanzania hizi rates zilivyo kwa Burea De change kuna gap kubwa sana kwa bei ya kununua na bei ya kuuza. Labda ununue uwauzie watu binafsi na sio watu wa bureau de Change tena.

I'm totally baffled.

 

[PatPending]

Last wednesday 23rd i was called by a friend and told if you have extra cash buy dollars for a quick profit,i bought US d 10000 at 1735 each and the next day it had reached 1830 and it being my first time i sold my dollars and made nearly a million shillings in a day.I bought the dollars at various bureau's no questions asked.
To think that there are people who do this everyday and some for a living was a new experience for me and unless BOT puts these bureau's under strict control/supervision the Tanzanian shilling will continue to lose value.There must be people who plow millions maybe billions into this and you can just imagine what it will do to our shilling by creating an artificial dollar shortage and they may also be doing the same for the Euro,Pound and other widely used foreign currencies

Mkubwa there is nothing wrong with currency trading after all that's what capital and securities markets are supposed to facilitate except that the local bourse hasn't really matured for currency trading to thrive. Deregulation of foreign exchange in Tanzania is governed by the 1992 Foreign Exchange Act, which along with the 1995 Bank of Tanzania Act specifically limit the BoT's involvement in currency trading to one of smoothing out periodic fluctuations. If I understood you correctly, what you are advocating is a more pronounced involvement of the BoT in limiting forex trading eithr through rate setting or quantitative restrictions. I am afraid a consequence of this may end being a revision of the parallel market scenario that reigned in the 1970s and 1980s something of which is no one's interest to happen again. This will also go against recommendations of the 1988 Nyirabu commission which have served us well to date.

To sum up, the reason why people trade in currency is an economic one and this necessitates an economic solution to the problem. Let's start by learning why people prefer to hold foreign money than the shilling and through this let's work out ways to improve the demand for shillings rather than artificially stifling the exchange of currency. One such way is to promote competitiveness, diversity, standards and output of local industries and farms and empower TBS to add substance to their certifications. In addition, local retailers and consumers need to be encouraged to have a change of mindset when all things Tanzanian are considered. Why not buy kuku wa kienyeji sokoni Kariakoo, Tandale, Kisutu or Tegeta instead of frozen poultry from South Africa found in the litany of mini markets or other int'l franchises scattered around the country? Why not shop magengeni instead of Shoprite? Why not buy nondo from Tanga or MM Steel (regradless of what you think of the owner) instead of China or India/Pakistan?

Na wenye mahoteli na watoaji huduma wengine (DSTV pia) acheni kututoza kwa dola, sisi ni nchi huru yenye fedha yetu.

 

[Chapakazi]

acha uwongo mzee mara ya mwisho mimi nilifikiria kama wewe nikajiona mjanja nikafanya hivyo mbona niliingia hasaraaaa tuuuu. Ngoja nikujulishe biashara ya kubadilisha hela inavyoenda. hizo rate unazoziona wanaziita ni market rate hizo ni za wale wanaonuunua kwa jumla ndo wanapewa hiyo rate. Siye wengine tunaonunua kwa kuunga unga tunapewa rate ambayo kwavyevyote huwezi nuunua leo alafu uuze kesho upate faida. Hapo unataka kutudanganya otherwise kungekuwa na matajiri wengi tuuuuuu.

Na kununua kwa jumla naweza fanya wapi? Ni benki au wapi?

 

[uporoto01]

acha uwongo mzee mara ya mwisho mimi nilifikiria kama wewe nikajiona mjanja nikafanya hivyo mbona niliingia hasaraaaa tuuuu. Ngoja nikujulishe biashara ya kubadilisha hela inavyoenda. hizo rate unazoziona wanaziita ni market rate hizo ni za wale wanaonuunua kwa jumla ndo wanapewa hiyo rate. Siye wengine tunaonunua kwa kuunga unga tunapewa rate ambayo kwavyevyote huwezi nuunua leo alafu uuze kesho upate faida. Hapo unataka kutudanganya otherwise kungekuwa na matajiri wengi tuuuuuu.

Nakubaliana na wewe mia kwa mia. Kwa Tanzania hizi rates zilivyo kwa Burea De change kuna gap kubwa sana kwa bei ya kununua na bei ya kuuza. Labda ununue uwauzie watu binafsi na sio watu wa bureau de Change tena.

Mko huru kukubali au kukataa lakini mkifanya uchunguzi kidogo mtagundua shilingi imeshuka kutoka 1400 mpaka 1850 wiki ilopita na jana ilikuwa 1740, mnaweza pia kuuliza na kupata kuwa tarehe 23,oktoba na 24,oktoba bei ilikuwaje.
Nyie endeleeni kupita bar ilo karibu na kulalamika mkitoka kazini huku nchi yetu imepata wabakaji wapya -speculators.

 

[uporoto01]

Mkubwa there is nothing wrong with currency trading after all that's what capital and securities markets are supposed to facilitate except that the local bourse hasn't really matured for currency trading to thrive. Deregulation of foreign exchange in Tanzania is governed by the 1992 Foreign Exchange Act, which along with the 1995 Bank of Tanzania Act specifically limit the BoT's involvement in currency trading to one of smoothing out periodic fluctuations. If I understood you correctly, what you are advocating is a more pronounced involvement of the BoT in limiting forex trading eithr through rate setting or quantitative restrictions. I am afraid a consequence of this may end being a revision of the parallel market scenario that reigned in the 1970s and 1980s something of which is no one's interest to happen again. This will also go against recommendations of the 1988 Nyirabu commission which have served us well to date.

To sum up, the reason why people trade in currency is an economic one and this necessitates an economic solution to the problem. Let's start by learning why people prefer to hold foreign money than the shilling and through this let's work out ways to improve the demand for shillings rather than artificially stifling the exchange of currency. One such way is to promote competitiveness, diversity, standards and output of local industries and farms and empower TBS to add substance to their certifications. In addition, local retailers and consumers need to be encouraged to have a change of mindset when all things Tanzanian are considered. Why not buy kuku wa kienyeji sokoni Kariakoo, Tandale, Kisutu or Tegeta instead of frozen poultry from South Africa found in the litany of mini markets or other int'l franchises scattered around the country? Why not shop magengeni instead of Shoprite? Why not buy nondo from Tanga or MM Steel (regradless of what you think of the owner) instead of China or India/Pakistan?Na wenye mahoteli na watoaji huduma wengine (DSTV pia) acheni kututoza kwa dola, sisi ni nchi huru yenye fedha yetu.

Thanks mkuu i have learned a few things from you.

 

[uporoto01]

If I understood you correctly, what you are advocating is a more pronounced involvement of the BoT in limiting forex trading eithr through rate setting or quantitative restrictions. I am afraid a consequence of this may end being a revision of the parallel market scenario that reigned in the 1970s and 1980s something of which is no one's interest to happen again. This will also go against recommendations of the 1988 Nyirabu commission which have served us well to date.

To sum up, the reason why people trade in currency is an economic one and this necessitates an economic solution to the problem. Let's start by learning why people prefer to hold foreign money than the shilling and through this let's work out ways to improve the demand for shillings rather than artificially stifling the exchange of currency.

Sir am not advocating any draconian messure but remember when bureau's were allowed to opperate they used to issue reciepts when they buy and would also write your details when you bought from them ? now there is no such thing you walk in buy/sell with no paperwork needed.You also need to know that if people who only need ferex buy it our shilling would not be hovering near 2000 per dollar,we have people who buy only to sell when the shilling drops.
This situation occured in Kenya last year and the CBK response was swift.Tanzania does not have an infinite supply of forex and only depends on export remmitance and a bit from tourism and mining what am saying is at least a monitoring mecanism should be in place to weed out the speculators.

 

[TIQO]

acha uwongo mzee mara ya mwisho mimi nilifikiria kama wewe nikajiona mjanja nikafanya hivyo mbona niliingia hasaraaaa tuuuu. Ngoja nikujulishe biashara ya kubadilisha hela inavyoenda. hizo rate unazoziona wanaziita ni market rate hizo ni za wale wanaonuunua kwa jumla ndo wanapewa hiyo rate. Siye wengine tunaonunua kwa kuunga unga tunapewa rate ambayo kwavyevyote huwezi nuunua leo alafu uuze kesho upate faida. Hapo unataka kutudanganya otherwise kungekuwa na matajiri wengi tuuuuuu.

Kweli mkuu lakini fikiri kama ungenununua kipindi kile ikiwa 1560 leo hii imefika 1770 si ungepata faida?

 

[i411]

Kweli mkuu lakini fikiri kama ungenununua kipindi kile ikiwa 1560 leo hii imefika 1770 si ungepata faida?

hivyo ndo jinsi ya kutengeneza hela kama unataka kuekeza kwa hela za kigeni na siyo ununue leo huuze kesho au wiki ijayo kama wewe ni mnunuaji wa kawaida unapigwa bao tuu. na kumbuka lazima uuekeze ela za maana siyo kidogo

 

[facebook]

Ijumaa exchange rate ilikuwa 1840 kwa CRDB, J3 ilibadilika gafla ikawa 1690, J4 jana ilipanda tena na kuwa 1825. Hizi zote ni selling rates. Nakubaliana sana na Upotoro01.
Tanzania hatuna exchange controls. Exchange inabadilika kutokana na forces za market demand na supply.
Mtu anaweza kucheza na market atakvyo. Nchi za wenzetu kama S.A, kununua foreign currency is too expensive. Kuna mikodi ya ajabu. Bora tu ubaki na rand zako. Na Tanzania ingekuwa hivi nafikiri hamna mtu angeweza kucheza na forex market.

 

[i411]

Ijumaa exchange rate ilikuwa 1840 kwa CRDB, J3 ilibadilika gafla ikawa 1690, J4 jana ilipanda tena na kuwa 1825. Hizi zote ni selling rates. Nakubaliana sana na Upotoro01.
Tanzania hatuna exchange controls. Exchange inabadilika kutokana na forces za market demand na supply.
Mtu anaweza kucheza na market atakvyo. Nchi za wenzetu kama S.A, kununua foreign currency is too expensive. Kuna mikodi ya ajabu. Bora tu ubaki na rand zako. Na Tanzania ingekuwa hivi nafikiri hamna mtu angeweza kucheza na forex market.

hiyo nod game ya mambo ya kuchenji hela za kigeni inapanda na kushuka kila siku nasizani mfano wako wa randi ni stable hata kuwe na mataxi vipi kupanda na kushuka kuko pale pale.kuna watali wanaenda huko na wanatoka huko ndo maana hela yapanda na kushuka.