THE
Central Bank of Tanzania (BOT) has cut down discount rate by 2 percent,
from 7 percent to 5 per cent with effective from today (May 12, 2020)
as an initiative to curb negative consequences cause by the global
pandemic Covid-19.
The
measure, according to BOT’s press statement issued today, will enable
commercial banks to borrow from the lender of the last resort at a lower
cost, something that will have a trickle-down to their respective
customers.
BOT’s Monetary Policy Committee met on 8th
May, 2020 and approved various policy measures geared to safeguard the
financial sector in the country after “a thorough assessment of impact
on a various sector.”
The
committee also approved the reduction of “haircuts on government
securities from 10 per cent to 5 per cent for Treasury bills and 40 per
cent to 20 per cent for Treasury bonds with effective from 12th May, 2020.”
According
to the press statement, the measure is expected to increase the ability
of banks to borrow from BOT with less collateral “than before.”
Moreover,
BOT has instructed mobile money operators to increase daily transaction
limit from 3m/- to 5m- and daily balance from 5m/- to 10m/- in order to
encourage customers to use digital payment platforms for transactions.
Full report will be published in the Daily News tommorrow (13th May, 2020).
No comments:
Post a Comment