BoT locks out five commercial banks from forex trading

Monday November 19 2018

Bank of Tanzania governor Prof Florens Luoga

Bank of Tanzania governor Prof Florens Luoga (centre) addressing the press on November 20, 2018. BoT has suspended five commercial banks from the inter-bank foreign exchange market for one month for breaching regulatory rules. PHOTO | MWANANCHI | NMG 

THE CITIZEN
By THE CITIZEN
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The Bank of Tanzania (BoT) has suspended five commercial banks from the inter-bank foreign exchange market (IFEM) for one month for breaching regulatory rules.

According to the regulator, the measure is intended to enforce compliance to the IFEM code of conduct.

“The suspended banks violated some provisions of the code of conduct. They either traded at off-market rates and or did not submit to the bank the transactions they made on November 16, 2018 contrary to the requirements of the code of conduct,” Zalia Mbeo, BoT’s Public Relations manager told The Citizen.

The suspended lenders are Exim Bank, Barclays Bank, UBA Bank, BancABC and Azania Bank.

The directive is part of the ongoing measures to crack down on illegal operations and money-laundering.

Confirming the BoT directive, Exim said in a statement that the suspension only applied to US dollar alone for the mentioned period— four weeks —within the Interbank Market and the lender was still allowed to trade all the other major currencies and participate in all dealings in Interbank Open Market Operations.

“We will continue to trade in foreign currencies with our clients as usual as there is no restriction on this. As our esteemed client, you will not experience any interruption in services throughout this period,” Exim Bank statement added.

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