Govt simplifies access to forex exchange services in Z’bar

DODOMA: THE government has said access to money changing services in the country, including at tourist hotels in Zanzibar is simplified after reviewing regulations to facilitate provision of the important services.

Deputy Minister for Finance Hamad Hassan Chande confirmed about the availability of the forex services in tourist hotels in Zanzibar when responding to the question posed by CCM Chumbuni legislator Ussi Salum Pondeza in Parliament yesterday.

The MP sought an answer from the government on measures it was instituting to avail forex exchange services close to tourist hotels in Zanzibar.

Outlining measures instituted to avail the services to tourist hotels, the deputy minister said the government produced the Foreign Exchange (Bureau de Change) Regulations, 2023 and announced them in the Government Gazette No 42 of October, 2023.

The regulations, he said, were meant to simplify access to forex exchange services in the country, including in tourist hotels.

He said under the new regulations, the Bank of Tanzania (BOT) issued three classes of licenses for bureau de change businesses that buy and sell foreign currency, including reducing the amount of capital required to start a bureau de change.

The classes are Class A, Class B and Class C.

He said the changes made to the regulations availed an opportunity to owners of 3-star hotels and above to apply for the licenses to run bureau de change business.

Due to changes, he said, the number of bureaux de change has increased from four with11 branches to 15 bureax de changes with 35 branches in Zanzibar.

Available information shows most tourist hotels in Zanzibar, particularly those considered 3-star and above, offer money changing services on-site, allowing guests to exchange foreign currency for Tanzanian shillings (TZS) directly at the hotel reception or a designated bureau de change window.

The move is encouraged by the Bank of Tanzania to contain black market currency exchange activity