Bank of Tanzania
Overview
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
. It is responsible for issuing the national currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
, the Tanzanian shilling
Tanzanian shilling
The shilingi is the currency of Tanzania, although widespread use of U.S. dollars is accepted. It is subdivided into 100 senti .The Tanzanian shilling replaced the East African shilling in 1966 at par....
.
The bank was established under the Bank of Tanzania Act 1965. However, in 1995, the government decided that the central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
had too many responsibilities, and was thus hindering its other objectives. As a result, the government introduced the Bank of Tanzania Act 1995, which gave the bank the single objective of monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
.
It is governed by a Board of Directors consisting of ten people, four of whom are ex-officio members which have three advisory committees that can assist them.
