ZANZIBAR: BANK of Tanzania (BoT) has urged residents of Unguja Island not to fear submitting their old banknotes as preparations for the demonetisation exercise gain momentum.
The central bank said the exercise is a routine process aimed at removing unutilised banknotes from circulation.
“We call on members of the public to provide maximum cooperation by exchanging the old banknotes they possess and they will be provided with ‘new ones’ equivalent to the amount submitted,” BoT’s Zanzibar Branch Director Mr Ibrahim Malogoi said.
The central bank on Tuesday conducted a oneday awareness/sensitisation workshop for journalists in Zanzibar City on the demonetisation exercise which will begin next January to April.
The exercise will involve all old banknotes (20; 200; 500; 1000; 2000; 5000; and 10000) issued between 1985 and 2003 and the 500/- of 2010. The BoT and all commercial backs will exchange the notes.
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BoT’s Assistant Manager Currency Mr Suleiman Rajab said those with the target banknotes outside the country should ensure to exchange them before legality expires through some channels.
“We are only cleaning up our currency circulation, not issuing new banknotes,” Mr Rajab said. Bank agents are excluded from the exercise and individuals submitting old banknotes will need to complete a special declaration form for record-keeping.
However, mutilated currency will not be accepted.
He said the wanted banknotes are still legal but not used or not in currency circulation for long, necessitating the BoT, as required by law, to remove them to minimise risks of financial crim
