1.0 Currency Department
The Bank is mandated by the Bank of
Tanzania Act, 2006 section 26 to have the sole right to issue bank notes and
coins in the country; thus it shall be the only legal tender in Tanzania.
Subsequently, Currency department is responsible in the designing and
ordering of banknotes and coins to meet the country’s demand; this is one of
the main functions of the department.
The Department has an objective to ensure
that clean money policy is achieved by making sure that all regions are
supplied by clean banknotes and coins. The Bank has four branches namely
Arusha, Zanzibar, Mwanza and Mbeya. Bank of Tanzania Head Quarters is in Dar
Es Salaam whereby the Bank supplies clean banknotes and coins while the
collected unserviceable currency are destroyed.
It is the responsibility of the
department to ensure that there is always an adequate stock of banknotes and
coins available in all denominations and that there is a good distribution
system to reach the various sectors of the Tanzania economy.
1.1
Functions of Currency Department
1.1.1
Distribution of Currency
Distribution of banknotes and coins to
all Bank of Tanzania branches and safe custody centre to ensure enough cash
needed for circulation is readily available. Aim is to ensure availability
of adequate currency stocks in the strong rooms and Cash Centres.
1.1.2 To
observe clean money policy
The department takes care of all
banknotes distributed in circulation ensuring all unserviceable banknotes
are taken out from the circulation and only clean counted and sorted
banknotes are issued back to the public.
1.1.3
Redemption of mutilated notes.
Mutilated note is a banknote that has
been damaged or changed its appearance by accidental or unintentional
contact with water, fire, chemicals etc. when these notes are brought to the
Bank; they require a close examination on the banknote, features and cause
of the damage in order to determine their values. Defaced coins are those
which are chipped, melted, distorted or not machine-countable.
Redemption of mutilated banknotes is done
under section 29 of the Bank of Tanzania Act 2006:
i) No person shall be entitled to recover from the Bank the value of any
lost, stolen or imperfect bank note, coin or of any banknote that has been
mutilated or of any coin that has been tampered with.
ii) The circumstances in which and the conditions and limitations upon
which, the value of any lost, stolen or imperfect notes or coins, mutilated
notes or coins which have been tampered with may be refunded as of grace by
the Bank shall be within the absolute discretion of the Bank.
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iii) Receipt of cash deposit from Commercial Banks, the Intermediate Vault
and Branches.
Bank of Tanzania is a banker for
commercial bank and the government. It provides a safe and convenient place
to store money and also maintain minimum reserves requirements.
iv) Payment of cash to Commercial Banks, Intermediate Vault and Branches.
The deposits by commercial banks can be
withdrawn from their accounts after a request is made to the bank.
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Contacts
Physical Location:
Offices of the Currency Department
are located on the 2nd floor North Tower of the Bank of Tanzania Building along 10 Mirambo
Street.
Postal Address
10 Mirambo Street
P.O. Box 2939
Dar Es
Salaam
Telephone
+255 22 2235673
E-mail address
Mr. J. C. Rushaka, Manager, Currency
jcrushaka@hq.bot-tz.org
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