Tatizo kubwa ni usimamizi duni wa vyombo vyetu vya fedha. Huku kuporomoka kwa Tsh pia kunachangiwa na matatizo ya watu kuswitch kwenye currency nyingine na kusababisha demand ya dola kuwa kubwa. Na ikiwa kubwa inamaana Price yake ndio hiyo inayokuwa defined na exchange rates inapanda wakati huo consumer tastes kwenye Tshs inapungua then shs inadepreciate. Kwahiyo kwa muono wangu mie tatizo ni usimamizi duni. Uwepo wa bureau si tatizo kwani zipo biashara zinazohusisha mataifa na haziepukiki, ila zile za ndani kutumia dollar ni kichefuchefu. Hapo ndio utayari wa kisiasa(political will) inahitajika.
Effects of Forex Transactions in Tanzania, Govt to act?
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Hekima Ufunuo
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Bnhai
Nakushukuru sana kwa ufafanuzi mkuu, pengine wanataka kuibadilisha shilingi ili tutumie dola, kwa sababu kwa viongozi wetu lolote linawezekana
Nakushukuru sana kwa ufafanuzi mkuu, pengine wanataka kuibadilisha shilingi ili tutumie dola, kwa sababu kwa viongozi wetu lolote linawezekana
Bluray
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Mimi kazi yangu ya mwisho Tanzania mshahara waliponiambia nataka kiasi gani nili-quote kwenye dola. Nafikiri kuweka quotes katika dola na kulipwa hela za Kitanzania haku violate currency issues wala kutishia biashara kwa namna yoyote ya maana zaidi ya ile ya kisaikolojia na ku puncture pride ya sovereignty. Mtindo huu una mzizi katika sababu za kibiashara zinazoweza kuhalalishwa kabisa, hususan kwa biashara zinazohusiana sana na urari wa kimataifa.Kwa sababu thamani ya shilingi inapoporomoka kwa kasi kubwa sana kulinganisha na thamani za fedha nyingine kubwa za biashara duniani, watu waliotoa bei katika shilingi wanaweza kuumia kibiashara.Chukulia mfano makampuni ya huduma za usafiri wa ndege ambayo hufanya manunuzi mengi -kuanzia matengenezo mpaka ununuzi wa mafuta- kwa kufuata mfumo wa bei ya soko la dunia.
Mimi nitakuwa na tatizo mtu atakapotaka alipwe actual American dollars, haya mambo ya kuwekeana quotes naelewa kisaikolojia si mazuri, kwani yanatoa ujumbe kwamba pesa yetu haijakamilika, lakini mara nyingine kuna sababu nzuri tu za kufanya hivi, ukiondoa walimbwende wengine wanaotaka kujinufaisha kutokana na mifumo ya masoko ya fedha ya dunia.
Mimi nitakuwa na tatizo mtu atakapotaka alipwe actual American dollars, haya mambo ya kuwekeana quotes naelewa kisaikolojia si mazuri, kwani yanatoa ujumbe kwamba pesa yetu haijakamilika, lakini mara nyingine kuna sababu nzuri tu za kufanya hivi, ukiondoa walimbwende wengine wanaotaka kujinufaisha kutokana na mifumo ya masoko ya fedha ya dunia.
Moja ya vyanzo vya kupolomoka kwa shs ni kukosa consumer taste ambayo tunaweza kuicontrol kwa kutumia sheria zetu za ndani. Yapo maeneo yanakubalika kwa fedha za kigeni lakini kwa nchi yetu imekuwa too much we have to fight back
Duuuuh hii kali aisee.............vijana inabidi mrudishe majeshi
Bongolander
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Mkuu hili ni suala linalotakiwa kuangaliwa kwa mapana. Dafu linaporomoka kila kukicha leo ukiwa na shilingo lakini moja usishangae kuona keshokutwa thamani yake ni shilingi 80,000. Naunga mkono kutumia dola ili value ya jasho la mtu ilindwe. Pamoja na kuwa $ inayumba lakini dafu letu ndio ovyo zaidi, hasa toka awamu ya nne iingie madarakani.
BAK
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Dollarization of the Tanzanian Economy, Is Tanzania a Failed State Economically?
.Debate!
In Tanzania today, air-tickets, school fees, hotel accommodation, automobiles, import duty, merchandise and even rent within affluent parts of the country is being priced and paid in United States Dollar. Those unwilling to pay the dollar are required cough the local currency, based on the days prevailing exchange rates.
It leaves many to wonder on the countrys economic direction, worthiness of her currency and the seriousness of her leadership to contain the rapidly spreading dollarization virus. Tanzania is being dollarized at whose benefit, and does this mean our country is a failed state, economically?
By definition dollarization means an extreme situation of an economic instability in which a foreign currency often the US dollar- replaces a countrys currency in performing basic functions of money.
By definition dollarization means an extreme situation of an economic instability in which a foreign currency often the US dollar- replaces a countrys currency in performing basic functions of money.
In some countries it becomes an official policy of the government to curb economic dilemma by letting the dollar become medium of exchange. It also implies that the domestic central bank is no longer available as a lender of last resort.
In other words some countries adopt the use of dollar so as to tie trade of their goods to world prices, so that the domestic inflation is closely related to United States Inflation. Official dollarization has been adopted in countries suffering from CHRONIC and extreme economic problems such as inflation; basically it is adopted in almost failed states.
While in Tanzania recently, I took a short vacation to Bagamoyo. I went to one of the resorts, and was requested to pay for the services in US dollar. I adamantly refused to pay the dollar because I was in my country, alternatively was advised to pay in domestic currency based on the days prevailing exchange rate, and believe it or not, the rate demanded was USD 1 was TSH 1355 as opposed to TSH 1315 which was the median. This sent me into a state of confusion on how useless the domestic currency has become to Tanzanians.
Amid Zimbabwes descent into social political turmoil, and economic nightmare characterized by historic and record breaking inflation levels, in the threshold of being a failed state, Zimbabwe was forced to dollarize her economy.
Zimbabwe dollar became worthless despite the relentless effort by the central bank to stabilize and even peg the countrys currency with hopes of restoring economic vitality of a nation that once stood as Africas breadbasket.
Zimbabweans had to swallow their pride and adopt a foreign currency US dollar- for her survival. Comrade Mugabe, an African hero, and a dictator in the eyes of the west, succumbed to colonization, which he has been against all of his life, by letting his country use a foreign currency. American dollar, therefore, became and perhaps is still the official medium of exchange.
Tanzania is one of the few African countries boasting peace and stability. The countrys strategic wealth of natural resources should have rendered her currency to be one of the strongest around the region should it have been blessed with good and formidable management; blessed with leaders who foresee the future and ready to be sacrificial for the good of their nation, than the gluttonous, economic vultures the country is blessed with today.
My inquisition as to why I was being charged a foreign currency in a sovereign nation brought about new discoveries; it came into my knowledge, while in Bagamoyo, that some of the frequent guests in these resorts are Cabinet Ministers and Members of parliament.
And all of them pay for the services rendered in United States Dollar. And my only question is, if ministers, high ranking government officials and Members of parliament can pay their bills in US dollar, who else then, can fight for the common man whose pillars of hope are being fractured and fragmented by the introduction of the dollar social divide culture? He has no defense!
We are going to be so naïve to believe that, these businesses charging foreign currencies are owned by ordinary citizens. These facilities are owned by the society elite and the KLEPTOCRATS; economic robberswithin the establishment- around the country who control the resources of the masses, collecting from the poor citizens, and even looting the public coffer just to turn around and transfer their loot into their offshore accounts. These few persons make life particularly harder and unattainable to the poor majority.
Picture a scenario likely to be faced by a peasant, hardened by poverty from the countryside that has never touched a dollar, must go through to pay for his or her childs school fees? Picture a recent graduate, trying to find housing, and has to pay in terms of the dollar. Does this mean that the poor are marginalized in their own country, at the expensive of the rich minority who retains exclusive rights to better services and preferential treatment?
Is it the new class Identity where dollar rules and serves as sign of power and prestige?
Currency is a symbol of nations sovereignty; source of cultural identity and pride. but when the very leaders we hold with high regards as custodians of our laws, and protectors of our sovereignty, lead the way by supporting the notion of our currency being worthless, then we have a problem.
And there is no way we can resolve our economic issues unless we vote in leaders who walk the talk, not just hypocrites and inexorably feebleminded, who dont understand the negative consequences of using foreign currency in your own country. Unless this is a government project meant to stabilize or get rid of the already worthless currency, the unworthiness of our currency will only get worse.
Unnecessary imports must be curtailed to encourage domestic innovation, and thus lessen demand for foreign currencies. The parliament must make sure all corrupt individuals who are threatening the economy, by having so much money in circulation are arrested and expeditiously tried, with their assets either frozen or confiscated.
This will in the long run, bring stability into the economy by letting the market play fairly following natural economic laws, reversing the current artificial environment created by the few rich who have inflated prices basically for everything to unrealistic levels, while demanding foreign currency for the services they offer.
I inexorably believe that, the Bank of Tanzania, has the power, and an upper hand, through its monetary policies to tame the problem if it decides and has the will to do so, especially by compelling depository and other financial institutions to cooperate in an effort to contain the dollarization pandemic. Countrys leadership, especially the parliament through passage of sweeping financial reforms and laws, can have far reaching effects in the efforts to rid the country of this problem.
The will to bring change must exist amongst the lawmakers; they must also understand the consequences of the dollarization to an economy. Alternatively, monetary experts may need to consider currency pegging as known in the economic circles or capital markets, in order to bring a temporary corrective measures while exploring long term solutions to the problem
The greatest solution of all is the citizenry who has more powers than any other institution .An ordinary citizen has the ability to refuse paying a dollar for the services rendered. This effort is the most effective and has far reaching consequences if can be pursued and adapted, because in the long run, it will bite where it hurts the most; the pocket of the perpetrator. An ordinary citizen has the power to boycott all businesses conducting their trade or services in foreign currency, and above all, has the power to vote out leaders who do not represent their interest and are part of the corruption syndicate .
There is no salvation available to the common man than his own self; Consumer Protection Agency which would have organized mass action, boycott, or institute legal action against these businesses is either dead or does not exist, or has been infiltrated by corruption, and rendered useless by the Kleptocrats, and I guess ordinary citizens are praying for the rise from dead Edward Sokoine, Julius Nyerere, and a few other true patriots who hated corruption with passion, to save their country.
If only we could unite and get rid of our enemy FEAR, we will see the re-birth of the Nyereres and Sokoines, of our generation, and the wind of change will blow our way.
Reminiscent to recent Zimbabwes, and Latin Americas dollarization of their economies in the turn of the decade, the musky and nascent cloud of dollarization of Tanzanian economy, is spelling the chronicle of failure foretold; collapsing of an economy at some point, unless immediate vigorous measures are taken.
Without being careful, and working aggressively to combat the growing dollarization, we may find ourselves in a state where all we have worked for becoming worthless, in exchange for sacks of banknotes to buy a loaf of bread. We must STOP the usage of dollar in our country, else we are handing our country over to the vultures of corruption
ukiangalia advantage/disadvantage kwa nchi kama Tanzania hakuna faida yeyote ya kuwa na strong currency,tuta perfom vizuri zaidi kiuchumi with weakening shillin kuliko strong...kinachotumaliza ni corruption tuu and bad governance sio weak shilling!
BAK
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The United States dollar is a preferred currency for some service providers, especial in the tourism sector.
BoT warns service providers who force customers to pay in foreign currencies
By SEBASTIAN MRINDOKO, 29th June 2010 @ 12:00,
THE Bank of Tanzania (BoT) has once again warned service providers who continue to force Tanzania citizens to pay for the services using foreign currencies in particular the United States dollar.
The caution comes amid claims from customers particularly indigenous that some service providers especially in tourism sector have continued to charge their customers in US dollar regardless of their citizenship.
The governor of the BoT, Prof Benno Ndulu told the 'Daily News' in an interview that it was wrong for the service providers to force their customers to pay for the service in foreign currencies and in particular the US dollar.
"I have been from time to time calling upon those who have been forced to pay the services in foreign currencies to report such cases at the BoT, in order that stern measures are taken against them," he said.
He urged them to report the matter immediately to his office, bringing evidences showing that they have paid the services in US dollar.
He said the Tanzania citizens should not be forced to make payment using United States dollar. "That is known to all the service providers but those who ignore it, stern legal measures should be taken against them," Prof Ndulu said.
The payment system should be free in all the places where services are being provided and wherever one is forced to pay in a currency, should report the matter to the BoT for legal action.
"When we get the reports of a service provider forcing a local customer to settle the bills in US dollar instead of the local currency, we will make an immediate follow-up and legal measures will be taken," he said.
He said the Tanzania shilling and the US dollar can be used in settling bills, but customers should be left free to choose between the two currencies.
On April 5, this year, Sajjad Fazal, a Dar es Salaam businessman and his friends toured Serengeti National Park and they were forced to pay in US dollar, contrary to tourism policy that allows locals to pay in Tanzanian shillings.
Fazal and his friends are all Tanzanians of Asian origin. He told the 'Daily News' recently that after reaching Seronera, they decided to take a balloon in order to tour Serengeti.
"Some employees with the Serengeti Balloons Safaris forced us to pay the bills in US dollar, which was contrary to the tourism policy that favours domestic tourists to pay their fees in Tanzanian shillings," he said.
Contacted for comments, the Serengeti Balloons Safaris Limited General Manager, Maria Strauss denied the allegations, saying his company was accepting both currencies whether Tanzania's shilling or US dollar or other foreign currencies.
Similar cases have been reported in various parts of the country with tourist hotels, particularly those located in the game reserves as well as in large cities like Arusha and Dar es Salaam.
the united states dollar is a preferred currency for some service providers, especial in the tourism sector.
bot warns service providers who force customers to pay in foreign currencies
by sebastian mrindoko, 29th june 2010 @ 12:00,
the bank of tanzania (bot) has once again warned service providers who continue to force tanzania citizens to pay for the services using foreign currencies in particular the united states dollar.
the caution comes amid claims from customers particularly indigenous that some service providers especially in tourism sector have continued to charge their customers in us dollar regardless of their citizenship.
the governor of the bot, prof benno ndulu told the 'daily news' in an interview that it was wrong for the service providers to force their customers to pay for the service in foreign currencies and in particular the us dollar.
"i have been from time to time calling upon those who have been forced to pay the services in foreign currencies to report such cases at the bot, in order that stern measures are taken against them," he said.
he urged them to report the matter immediately to his office, bringing evidences showing that they have paid the services in us dollar.
he said the tanzania citizens should not be forced to make payment using united states dollar. "that is known to all the service providers but those who ignore it, stern legal measures should be taken against them," prof ndulu said.
the payment system should be free in all the places where services are being provided and wherever one is forced to pay in a currency, should report the matter to the bot for legal action.
"when we get the reports of a service provider forcing a local customer to settle the bills in us dollar instead of the local currency, we will make an immediate follow-up and legal measures will be taken," he said.
he said the tanzania shilling and the us dollar can be used in settling bills, but customers should be left free to choose between the two currencies.
on april 5, this year, sajjad fazal, a dar es salaam businessman and his friends toured serengeti national park and they were forced to pay in us dollar, contrary to tourism policy that allows locals to pay in tanzanian shillings.
fazal and his friends are all tanzanians of asian origin. He told the 'daily news' recently that after reaching seronera, they decided to take a balloon in order to tour serengeti.
"some employees with the serengeti balloons safaris forced us to pay the bills in us dollar, which was contrary to the tourism policy that favours domestic tourists to pay their fees in tanzanian shillings," he said.
contacted for comments, the serengeti balloons safaris limited general manager, maria strauss denied the allegations, saying his company was accepting both currencies whether tanzania's shilling or us dollar or other foreign currencies.
similar cases have been reported in various parts of the country with tourist hotels, particularly those located in the game reserves as well as in large cities like arusha and dar es salaam.
......a professor with stupid mind.................
BAK
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By MASATO MASATO, 25th July 2010 @ 23:09,
DAILY NEWS
ECONOMISTS and financial analysts have warned against indiscriminate use of the US dollar in local transactions, saying the trend was exposing the nation to great economic risks.
They have instead asked the government to intervene swiftly before the situation got out of hand and plunge the economy into irreversible crisis.
I don't understand why the government is allowing dollarisation of the economy," wonders Dr Donath Olomi, an economist with the University of Dar es Salaam (UDSM) Business School, noting that wanton use of the greenback was exerting unnecessary pressure on the local currency.
The 'Daily News' survey shows that many Tanzanians were now pegging prices in US dollars and demanding payment by the greenback. People are asked to pay for air-tickets, school fees, hotel accommodation, automobiles, import duty and rent in US dollars.
Those unwilling or unable to pay in US dollars are forced cough up local currency, based on the sellers exchange rate of choice. I quote my consultancy work in dollars I have no way out because that is the trend, charged Dr Olomi, asking the government to enforce the countrys financial regulations that criminalise dollarisation of the economy.
He said dollar-based pricing not only results into steep depreciation of the local currency and fans inflation but also reflects loss of confidence in the countrys legal tender -- the Tanzania Shilling. Mr Anold Kilewo, a renowned figure in Tanzanias business community, accused the government and the Central Bank in particular of failure to enforce financial regulations.
The problem is that there is no control by the government and people will keep demanding dollars, unnecessarily this is not good at all for our weak economy, he said. Many interviewees wondered on the countrys economic direction, worthiness of her currency and the seriousness of the leadership to contain the rapidly spreading dollarisation virus.
Experts define dollarisation as an extreme situation of an economic instability in which a foreign currency often the US dollar -- replaces a countrys currency in performing basic functions of money. With each seller of a product or service demanding the dollar or the shilling at an exchange rate of ones own choice, it translates into every Dick and Tom trading in money, which legally is the reserve of commercial banks and bureaux de change.
Former president of Tanzania Private Sector Foundation Elvis Musiba cautioned, If this trend (of everybody yearning for the dollar) is left to prevail, its likely to end up with adverse consequences for the national economy. He urged those obsessed with the dollar to strive for exports of goods and services.
Mr Musiba said Tanzania being a net importing country can ill afford to keep her currency exchange rates against hard currencies so high. The shilling has in recent days depreciated sharply, reaching a record rate of 1,530/- per US dollar. The ordinary man is the hard hit victim of the weak shilling because most of the basic essentials are imported with their prices subjected to the value of the dollar against the shilling.
But, the weak shilling is beneficial to few exporters and employees paid in US dollars. Analysts however warn that dollarisation in the country might prove difficult to curb because people who should have spearheaded the war against the excessive uses of dollars in the economy -- high ranking government officials -- are the direct beneficiaries of the weak shilling -- through travel allowances in foreign trips.
An official with a Dar es Salaam based hotel doubted whether the common man has anywhere to complain for being charged in foreign currency because the government itself pays in dollars. We do a lot of business with the government we always invoice them in dollars and they pay, he said.
Way back in 2007, former Finance Minister Zakia Meghji declared as illegal the growing trend of pricing goods and services for Tanzanians in US dollars, threatening stern measures against those found to perpetuate the malpractice. She ordered that all commercial transactions in the country be pegged on the local currency, the directive which however has widely been ignored.
DAILY NEWS
ECONOMISTS and financial analysts have warned against indiscriminate use of the US dollar in local transactions, saying the trend was exposing the nation to great economic risks.
They have instead asked the government to intervene swiftly before the situation got out of hand and plunge the economy into irreversible crisis.
I don't understand why the government is allowing dollarisation of the economy," wonders Dr Donath Olomi, an economist with the University of Dar es Salaam (UDSM) Business School, noting that wanton use of the greenback was exerting unnecessary pressure on the local currency.
The 'Daily News' survey shows that many Tanzanians were now pegging prices in US dollars and demanding payment by the greenback. People are asked to pay for air-tickets, school fees, hotel accommodation, automobiles, import duty and rent in US dollars.
Those unwilling or unable to pay in US dollars are forced cough up local currency, based on the sellers exchange rate of choice. I quote my consultancy work in dollars I have no way out because that is the trend, charged Dr Olomi, asking the government to enforce the countrys financial regulations that criminalise dollarisation of the economy.
He said dollar-based pricing not only results into steep depreciation of the local currency and fans inflation but also reflects loss of confidence in the countrys legal tender -- the Tanzania Shilling. Mr Anold Kilewo, a renowned figure in Tanzanias business community, accused the government and the Central Bank in particular of failure to enforce financial regulations.
The problem is that there is no control by the government and people will keep demanding dollars, unnecessarily this is not good at all for our weak economy, he said. Many interviewees wondered on the countrys economic direction, worthiness of her currency and the seriousness of the leadership to contain the rapidly spreading dollarisation virus.
Experts define dollarisation as an extreme situation of an economic instability in which a foreign currency often the US dollar -- replaces a countrys currency in performing basic functions of money. With each seller of a product or service demanding the dollar or the shilling at an exchange rate of ones own choice, it translates into every Dick and Tom trading in money, which legally is the reserve of commercial banks and bureaux de change.
Former president of Tanzania Private Sector Foundation Elvis Musiba cautioned, If this trend (of everybody yearning for the dollar) is left to prevail, its likely to end up with adverse consequences for the national economy. He urged those obsessed with the dollar to strive for exports of goods and services.
Mr Musiba said Tanzania being a net importing country can ill afford to keep her currency exchange rates against hard currencies so high. The shilling has in recent days depreciated sharply, reaching a record rate of 1,530/- per US dollar. The ordinary man is the hard hit victim of the weak shilling because most of the basic essentials are imported with their prices subjected to the value of the dollar against the shilling.
But, the weak shilling is beneficial to few exporters and employees paid in US dollars. Analysts however warn that dollarisation in the country might prove difficult to curb because people who should have spearheaded the war against the excessive uses of dollars in the economy -- high ranking government officials -- are the direct beneficiaries of the weak shilling -- through travel allowances in foreign trips.
An official with a Dar es Salaam based hotel doubted whether the common man has anywhere to complain for being charged in foreign currency because the government itself pays in dollars. We do a lot of business with the government we always invoice them in dollars and they pay, he said.
Way back in 2007, former Finance Minister Zakia Meghji declared as illegal the growing trend of pricing goods and services for Tanzanians in US dollars, threatening stern measures against those found to perpetuate the malpractice. She ordered that all commercial transactions in the country be pegged on the local currency, the directive which however has widely been ignored.
Renegade
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Kwa kweli jambo hili linataka Enforcement ya kweli na siyo politiking, tatizo la watanzania tunaingiza politics kwenye vitu mpaka vya kitaalamu, unawezaje kupima Shillings value against forex kama dominant currency siyo yako? Ifike wakati sasa serikali iunde Task Force kwa ajili ya hii kitu, tutaendelea kuibiwa mpaka lini? huu ni wizi mkubwa sana ambao umefumbiwa macho.
Bongolander
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Bubu issue hii uliileta mara kwanza mwaka 2007 na sasa mwaka 2010 imeendelea kuwepo na iko worse. Nina hakika wahusika waliioona na wakaipuuza. Niafhadhari tujue wazi au tuamue wazi kuwa tutatumia US dollar na sio Tanzanian shiling otherwise tutaendelea kunyonywa kila siku.
Kila siku watu wanasema awamu ya nne imefanya mazuri, wengi hapa JF tunajua si kweli tunajua kuwa wamefanya mengi mabaya na moja ya mabaya hayo ni hili la dollarization of the economy.
Kila siku watu wanasema awamu ya nne imefanya mazuri, wengi hapa JF tunajua si kweli tunajua kuwa wamefanya mengi mabaya na moja ya mabaya hayo ni hili la dollarization of the economy.
Kichuguu
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Bubu,
Tatizo ni kuwa Tanzania hatuna "serikali ya nchi," ambayo ndiyo ina jukumu la kulinda sheria za nchi. Kukosekana kwa "serikali ya nchi" ndiko kunakofanya sheria zote za nchi ziwe zinakiukwa with impunity. Serikali iliyopo ni ya mtaani tu, kwa hiyo inasimamisa mambo madogo madogo ya mitaani vilevile huku yale mambo makubwa ya nchi yakiwa hayana msimamizi. Ndiyo maana utaona kesi zote ziwe za rushwa au mauaji zinazoshughulikiwa huwa ni za watu wadogo wadogo (yaani wa mtaani) tu. Kesi za namna hiyo hiyo kwa kiwango cha juu zinazahusu vigogo na wafanya biashara wakubwa, utaona hazishughulikiwi kabisa. Kwa hiyo hili swali la kutumia dola badala ya shilingi ni kutokana na kuwa wanaodai dola ni wale vigogo wasioguswa na serikali hii ya mtaani. Huwezi kumkuta mama ntilie au machinga akiuza bidhaa zake kwa dola.
Ndiyo maana tunahitaji mwelekeo mpya kabisa kuhakikisha tuna serikali ya nchi kwa vile kuna mambo mengi yanayohitaji usimamzi wa serikali, lakini kwa zaidi ya miaka 20 yamekuwa hayana msimamizi yeyote.
bona
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kupinga kwa mdomo na kutekeleza kwa nchi hii ni vitu viwili tofauti, weka sheria na zitekelezwe, ukisoma vizuri hata yeye unaona jinsi ambavyo hayuko serious, kuaema kua inabidi kuweka bei zote mbili na ukiwa na dola hutazuiwa kutumia ni kielelezo tosha kua anatishia nyau kwani wafanyabiashara wana prefer kutumia dola so wataendelea kutumia!
BAK
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[h=2]It`s time to tame `dollarisation`[/h]
By Editor
3rd July 2011
The Bank of Tanzania (BOT) might not agree with what is really happening. We at The Guardian on Sunday might not also agree with it if we have to stick to the characteristics of a dollarised economy.
But, the reality on the ground forces us to believe that Tanzania is slowly becoming a nation of unofficial dollarisation.
Dollarisation occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency. The term is not only applied to usage of the United States dollar, but generally to the use of any foreign currency as the national currency.
If the above definition has to be followed and respected, we are in a dollarised economy. We pay Digital Satellite Televisions' monthly bills in US dollars, we pay rents in dollars, we pay school fees in dollars, we buy books in dollars and many more.
Though finally we end up paying in local currency, the truth is that the prices are pegged in US dollars, whereby you are required to pay in local shillings basing on the prevailing exchange rates of that particular time.
For years, this has been the trend in our country and whoever pays in dollars is sometimes considered a well exposed person. In this country, it's easy to buy any amount of dollars without even showing proof of why you need the foreign currency.
But, the truth is that under the current system of prices being pegged in dollars, it's the local consumers who are really feeling the pinch, especially when the shilling is depreciating alarmingly as it is now.
In simple mathematics, if last year your DSTV monthly bill was $70 at the time when the shilling was trading at $1,400, what you spent to watch Super Sport channel or Cable News Network was Sh98,000.
But today, the very same service is costing you Sh115, 500 per month. This is not because DSTV has increased its price. It is mainly because the shilling has been depreciating its value whereby currently it is trading at Sh1650.
It is the same for a tenant whose rent is pegged to the dollar or a parent who pays school fees in foreign currency. But why should you be charged in US dollars, but pay in local currency?
In a country like South Africa, it is impossible to find any service being pegged to the dollar, let alone using the US dollar as a legal tender in any transactions. But, in Tanzania, a land of broken rules and regulations, the dollar triumphs at the expense of locals.
We, at The Guardian on Sunday strongly demand the intervention from the Bank of Tanzania and the Ministry of Finance to end this shameless business in our country.
This is not what liberalisation is about, but it is just another failure of those tasked by the duty to oversee the monetary rules and regulations in our country.
Are we more liberal than South Africa, Ghana or India? Not really, but sometimes we want the people to believe so. It's time to end this unofficial dollarisation of our economy.
SOURCE: GUARDIAN ON SUNDAY
By Editor
3rd July 2011
The Bank of Tanzania (BOT) might not agree with what is really happening. We at The Guardian on Sunday might not also agree with it if we have to stick to the characteristics of a dollarised economy.
But, the reality on the ground forces us to believe that Tanzania is slowly becoming a nation of unofficial dollarisation.
Dollarisation occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency. The term is not only applied to usage of the United States dollar, but generally to the use of any foreign currency as the national currency.
If the above definition has to be followed and respected, we are in a dollarised economy. We pay Digital Satellite Televisions' monthly bills in US dollars, we pay rents in dollars, we pay school fees in dollars, we buy books in dollars and many more.
Though finally we end up paying in local currency, the truth is that the prices are pegged in US dollars, whereby you are required to pay in local shillings basing on the prevailing exchange rates of that particular time.
For years, this has been the trend in our country and whoever pays in dollars is sometimes considered a well exposed person. In this country, it's easy to buy any amount of dollars without even showing proof of why you need the foreign currency.
But, the truth is that under the current system of prices being pegged in dollars, it's the local consumers who are really feeling the pinch, especially when the shilling is depreciating alarmingly as it is now.
In simple mathematics, if last year your DSTV monthly bill was $70 at the time when the shilling was trading at $1,400, what you spent to watch Super Sport channel or Cable News Network was Sh98,000.
But today, the very same service is costing you Sh115, 500 per month. This is not because DSTV has increased its price. It is mainly because the shilling has been depreciating its value whereby currently it is trading at Sh1650.
It is the same for a tenant whose rent is pegged to the dollar or a parent who pays school fees in foreign currency. But why should you be charged in US dollars, but pay in local currency?
In a country like South Africa, it is impossible to find any service being pegged to the dollar, let alone using the US dollar as a legal tender in any transactions. But, in Tanzania, a land of broken rules and regulations, the dollar triumphs at the expense of locals.
We, at The Guardian on Sunday strongly demand the intervention from the Bank of Tanzania and the Ministry of Finance to end this shameless business in our country.
This is not what liberalisation is about, but it is just another failure of those tasked by the duty to oversee the monetary rules and regulations in our country.
Are we more liberal than South Africa, Ghana or India? Not really, but sometimes we want the people to believe so. It's time to end this unofficial dollarisation of our economy.
SOURCE: GUARDIAN ON SUNDAY
Muke Ya Muzungu
JF-Expert Member
- Jun 17, 2009
- 3,444
- 264
Source : Frank Makange Blog
Nimeinyaka hii makala kwa ndugu yangu Frank Makange Blog kuhusu kufuta matumizi ya dola kwenye taifa letu. Hii imekaaje wnajamvini?
On the face of a gloomy economic outlook, and a widespread of the United States Dollar usage within our economy, Tanzanian shilling is rapidly losing its grip against major global currencies. This is a great concern currency regulators and the political establishment must urgently act to contain. Among other economic and fiscal tools, United States Dollar usage containment within the main stream economy must be a priority to save the shilling, and our ailing economy from further damage and possible descent into the economic drainage.
Less than two years ago, one United States Dollar traded at TSH 1,250. Last week in Dar-es-salaam, I exchanged one USD for TSH 1680; a 36% leap, and seemingly the dollar is sprinting towards TSH 2,000. This instability is quite worrisome, not only to the domestic and foreign corporations; but to the entire economic spectrum. People are losing their wealth and cost of living is constantly rising. The upward trend may unravel uncontrollable inflation, and perhaps retard or suppress economic activity/growth in entirety.
Fall of the shilling is a serious national concern with chilling effects on the direction of our economic future. By all accounts, global economic crisis, energy problems and poor national productivity would bear the blame. However, rampant and unregulated use of United States Dollar in our main stream economy has rendered the shilling a worthless piece of paper to say the least. This debilitating, and contagious factor has been overlooked even though its obvious effects continue to weaken and crush the shilling.
United States Dollar has become the currency of choice in Tanzania. Purchase of foreign made industrial, agricultural equipment and spare-parts requires the dollar. Rent in many segments of the country is priced and paid in United States Dollar. Accommodation and other services within the economy have for a long time, been and are still being priced in the United States Dollar, creating an artificial excessive demand for the dollar while making the shilling less valuable. In the face of high unemployment, stagnant wages, and high cost of living, this sharp fall of the shilling, proportionally diminishes ordinary citizens purchasing power, hence extreme inflation and loss of accumulated wealth.
Business people from neighboring countries, Far East, and Europe have found Tanzania to be a safe haven to launder money. They are greatly contributing to the demise of the Tanzanian shilling by creating an artificial scarcity for the dollar, in the sense that, after they dispose of their merchandise, both legal and illegal into the country, they either demand payment in US Dollars, or dump altogether the TSH at the local Bureau de Change before returning to their home countries. After few days of being in Dar-es-Salaam, I met a Kenyan businessman who had dumped 75million Tanzania shillings at a local Bureau de Change in one day.
Fall of the shilling means investments will result in lower returns when converted back to foreign currency, as such, most of foreign corporations operating in the country, will have no choice but to raise cost of their goods and services to meet their operating cost and other margins. Otherwise, they may be forced to shut down their doors. Likewise, when the value of a domestic currency falls sharply, importation of essential goods and commodities proportionally decreases, resulting into a massive inflation, characterized by sky high prices of essential necessities.
Pricing and paying for housing, air ticket, maritime, and other services in foreign currency end up creating an artificial demand for foreign currencies. Due to our country's negative balance of payment, our foreign currency reserve will always play in the negative territories, while dollarization only contributes and worsen the situation. What the country is experiencing today is without a doubt, a beginning of an extreme structural inflation which could hit 30% by early next year if not contained.
Inflation fuelled by dollarization and other factors, is becoming a major event in the coming months, and major part of 2012 with the consumer price index likely to triple. Taking into account the rate of unemployment and stagnant wages vs. rise in the cost of living, I tend to see prices for basic commodities tripling as the shilling continue to take a beating from the dollar and other currencies. This situation is likely to force many importers out of business as a result of high cost of the foreign goods in relation to the revenue needed to remain operational.
Without enforcement of strict monetary policies, domestic usage of the dollar will only thrive. It is therefore imperative and extremely important for the government to OUTLAW the US Dollar usage, if at all there is an economic and political will to save our currency and economy. Honorable Mkulo, and Governor Benno Ndulu, must employ all the economic and fiscal tools at their disposal including reigning on commercial banks, and other financial institutions exhilarating the currency problem. Else, we must reconcile with the emergence of new class of worthless billionaires as the shilling continue to tumble.
Mungu Ibariki Tanzania.
Nimeinyaka hii makala kwa ndugu yangu Frank Makange Blog kuhusu kufuta matumizi ya dola kwenye taifa letu. Hii imekaaje wnajamvini?
On the face of a gloomy economic outlook, and a widespread of the United States Dollar usage within our economy, Tanzanian shilling is rapidly losing its grip against major global currencies. This is a great concern currency regulators and the political establishment must urgently act to contain. Among other economic and fiscal tools, United States Dollar usage containment within the main stream economy must be a priority to save the shilling, and our ailing economy from further damage and possible descent into the economic drainage.
Less than two years ago, one United States Dollar traded at TSH 1,250. Last week in Dar-es-salaam, I exchanged one USD for TSH 1680; a 36% leap, and seemingly the dollar is sprinting towards TSH 2,000. This instability is quite worrisome, not only to the domestic and foreign corporations; but to the entire economic spectrum. People are losing their wealth and cost of living is constantly rising. The upward trend may unravel uncontrollable inflation, and perhaps retard or suppress economic activity/growth in entirety.
Fall of the shilling is a serious national concern with chilling effects on the direction of our economic future. By all accounts, global economic crisis, energy problems and poor national productivity would bear the blame. However, rampant and unregulated use of United States Dollar in our main stream economy has rendered the shilling a worthless piece of paper to say the least. This debilitating, and contagious factor has been overlooked even though its obvious effects continue to weaken and crush the shilling.
United States Dollar has become the currency of choice in Tanzania. Purchase of foreign made industrial, agricultural equipment and spare-parts requires the dollar. Rent in many segments of the country is priced and paid in United States Dollar. Accommodation and other services within the economy have for a long time, been and are still being priced in the United States Dollar, creating an artificial excessive demand for the dollar while making the shilling less valuable. In the face of high unemployment, stagnant wages, and high cost of living, this sharp fall of the shilling, proportionally diminishes ordinary citizens purchasing power, hence extreme inflation and loss of accumulated wealth.
Business people from neighboring countries, Far East, and Europe have found Tanzania to be a safe haven to launder money. They are greatly contributing to the demise of the Tanzanian shilling by creating an artificial scarcity for the dollar, in the sense that, after they dispose of their merchandise, both legal and illegal into the country, they either demand payment in US Dollars, or dump altogether the TSH at the local Bureau de Change before returning to their home countries. After few days of being in Dar-es-Salaam, I met a Kenyan businessman who had dumped 75million Tanzania shillings at a local Bureau de Change in one day.
Fall of the shilling means investments will result in lower returns when converted back to foreign currency, as such, most of foreign corporations operating in the country, will have no choice but to raise cost of their goods and services to meet their operating cost and other margins. Otherwise, they may be forced to shut down their doors. Likewise, when the value of a domestic currency falls sharply, importation of essential goods and commodities proportionally decreases, resulting into a massive inflation, characterized by sky high prices of essential necessities.
Pricing and paying for housing, air ticket, maritime, and other services in foreign currency end up creating an artificial demand for foreign currencies. Due to our country's negative balance of payment, our foreign currency reserve will always play in the negative territories, while dollarization only contributes and worsen the situation. What the country is experiencing today is without a doubt, a beginning of an extreme structural inflation which could hit 30% by early next year if not contained.
Inflation fuelled by dollarization and other factors, is becoming a major event in the coming months, and major part of 2012 with the consumer price index likely to triple. Taking into account the rate of unemployment and stagnant wages vs. rise in the cost of living, I tend to see prices for basic commodities tripling as the shilling continue to take a beating from the dollar and other currencies. This situation is likely to force many importers out of business as a result of high cost of the foreign goods in relation to the revenue needed to remain operational.
Without enforcement of strict monetary policies, domestic usage of the dollar will only thrive. It is therefore imperative and extremely important for the government to OUTLAW the US Dollar usage, if at all there is an economic and political will to save our currency and economy. Honorable Mkulo, and Governor Benno Ndulu, must employ all the economic and fiscal tools at their disposal including reigning on commercial banks, and other financial institutions exhilarating the currency problem. Else, we must reconcile with the emergence of new class of worthless billionaires as the shilling continue to tumble.
Mungu Ibariki Tanzania.
This article was written by John Mashaka. He writes on Economy and opinions expressed are his own.
E-mail:mashaka.john@yahoo.com
E-mail:mashaka.john@yahoo.com
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