Africa-Press – Tanzania. The Bank of Tanzania (BoT) is stepping up efforts to improve currency quality, emphasising public responsibility in handling banknotes.
By targeting the circulation of worn and dirty notes, the move aims to enhance transactional efficiency, reduce replacement costs and support overall confidence in the financial system, highlighting the intersection of citizen behaviour and central bank policy in maintaining monetary integrity.
The central bank said such mis-handling habits significantly reduce the lifespan of banknotes, warning that careless handling from folding to crumpling drive up government expenditure on replacement.
BoT’s Assistant Manager for Economics and Statistics Mr Shamy Chamicha said that mishandled banknotes translate into direct financial losses for the central bank.
“There are people who fold these notes or keep them in environments that are not friendly, especially paper notes, something that damages their quality and the replacement exercise is costly,” Mr Chamicha said yesterday during a seminar for journalists held in Dodoma.
He said the central bank has been providing education on the proper use of money in circulation, so the community must ensure that the money being used is well preserved so it can remain in circulation longer.
Mr Chamicha added that apart from mishandling being one of the reasons for the decrease in note quality, he touched on the overuse of notes in circulation as another factor for note deterioration.
For instance, he mentioned the 1,000/- note as one of the notes that is widely used in circulation due to its value in settling transactions.
In addition, BoT has a role to formulate, publish, and implement monetary policy, along with overseeing the circulation of money in the country, ensuring that inflation remains at a stable level.
“Through monetary policies, the bank conducts regular assessments of economic trends and takes appropriate measures to control any increase or decrease in the amount of money in circulation,” he added.
The three-day workshop, organised by the central bank, aimed at equipping journalists especially in understanding monetary and economic policies in general. Nearly 40 journalists from five regions attended.
Participants in this seminar had the opportunity to learn about various topics, including the structure and functions of the central bank, the monetary policy that uses the central bank interest rate, and also knowledge on bonds.
Earlier, BoT’s Manager of the Operations Department, Dodoma Branch, Mr Nolasco Maluli said this workshop would increase journalists understanding of financial and economic matters.
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