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Rethinking Trade: Tanzania's Local Currency Initiative & Its Impact on East Africa
Rethinking Trade: Tanzania's Local Currency Initiative & Its Impact on East Africa
Sputnik Africa
Tanzania has thrown its support behind the use of local currencies in regional trade within East Africa, a move aimed at reducing dependency on foreign... 30.10.2024, Sputnik Africa
2024-10-30T19:00+0100
2024-10-30T19:00+0100
2024-11-21T14:05+0100
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Rethinking Trade: Tanzania's Local Currency Initiative & Its Impact on East Africa
Sputnik Africa
Tanzania has thrown its support behind the use of local currencies in regional trade within East Africa, a move aimed at reducing dependency on foreign currencies and strengthening economic integration across the region. Global South Pole host discusses with an economist on the prospects of this move.
Tanzania’s recent directive mandating that all domestic transactions be conducted and advertised in Tanzanian shillings represents a bold move toward asserting financial sovereignty and reducing dependency on the U.S. dollar, according to Professor Mary Lucia Mbithi, a senior lecturer at the University of Nairobi’s School of Economics.The academician further explains that the policy aligns with the financial framework of the Bank of Tanzania, which designates the shilling as the sole legal tender for domestic transactions.From a regional perspective, Tanzania’s policy aligns with broader discussions within the East African Community [EAC] on establishing a common monetary policy and eventually adopting a unified currency.To find out what else the economist had to say, tune in to the Global South Pole podcast, brought to you by Sputnik Africa.In addition to the website, you can also catch our episodes on Telegram.► You can also listen to our podcast on Apple Podcasts, Spotify, Deezer, Castbox, Pocket Casts, Afripods, Podcast Addict, and Overcast.► Check out all the episodes of Global South Pole.
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podcasts, economy, tanzania, east africa, us dollar, trade, african continental free trade area (afcfta), east african community (eac), commodities exchange, economic growth, kenya, ethiopia, brics, brics plus, djibouti, uganda, аудио
Rethinking Trade: Tanzania's Local Currency Initiative & Its Impact on East Africa
19:00 30.10.2024 (Updated: 14:05 21.11.2024) Tanzania has thrown its support behind the use of local currencies in regional trade within East Africa, a move aimed at reducing dependency on foreign currencies and strengthening economic integration across the region. Global South Pole host discusses with an economist on the prospects of this move.
Tanzania’s recent directive mandating that all domestic transactions be conducted and advertised in Tanzanian shillings represents a bold move toward asserting financial sovereignty and reducing dependency on the U.S. dollar, according to Professor Mary Lucia Mbithi, a senior lecturer at the University of Nairobi’s School of Economics.
The academician further explains that the policy aligns with the financial framework of the Bank of Tanzania, which designates the shilling as the sole legal tender for domestic transactions.
“This is very important for the sovereignty of the country. When people are trading, they use their local currencies as mandated by the central bank. Secondly, the use of local currency is likely to reduce the local demand for the U.S. dollar because what we find with the current initiative is that it will reduce the use of the U.S. dollar in the local market,” Prof. Mbithi says.
From a regional perspective, Tanzania’s policy aligns with broader discussions within the East African Community [EAC] on establishing a common monetary policy and eventually adopting a unified currency.
“The move by Tanzania is a good move towards pushing the East African community partner states to agree on a common currency and possibly to move to more integration into our monetary union and therefore the use of a common EAC currency, which is critical for their movement towards attaining the regional integration in East Africa, the Common monetary union,” she remarks.
To find out what else the economist had to say, tune in to the Global South Pole podcast, brought to you by Sputnik Africa.
In addition to the website, you can also catch our episodes on
Telegram.► Check out all the episodes of Global South Pole. 
