TANZANIA: THE Bank of Tanzania (BoT) has issued a strong warning against the circulation of counterfeit currency, specifically in relation to the exchange of old banknotes.
In a recent statement to banks and financial institutions, BoT announced the phasing out of old banknotes from circulation.
BoT’s Acting Director of Currency Management, Mr Ilulu Ilulu, emphasised that thorough inspections will be conducted during the exchange process to prevent the Central Bank from receiving counterfeit notes.
“Anyone attempting to exchange fake notes will face consequences, as such actions are against the law,” Mr Ilulu told journalists last Thursday during an event detailing the bank’s plan to remove old banknotes from circulation.
The exchange period for old banknotes will run for three months, from January to April next year, affecting denominations of 20/-, 200/-, 500/-, 1,000/-, 2,000/-, 5,000/- and 10,000/- issued between 1985 and 2003, as well as the 500/- note issued in 2010.
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After this period, BoT stated, these old banknotes will no longer be considered legal tender within Tanzania or abroad.
Regarding the economic impact of withdrawing the old notes, Mr Ilulu reassured that it would have no adverse effects, as it is a routine procedure conducted when necessary.
He confirmed that the value of the old banknotes remains unchanged and dismissed rumours that the BoT is introducing new notes as the reason for the phaseout.
He also advised the public against buying and selling old notes on the streets, warning that such practices are illegal and constitute fraud.
Instead, people should go to commercial banks for the exchange, where designated windows have been set up for this purpose.
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