Browsing by Author "Mwakyoma, Amani"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    The role of bank of Tanzania in regulation of import and export trade and foreign reserves: law, policy and practice
    (University of Dar es Salaam, 2006) Mwakyoma, Amani
    This study intends to determine the nature and scope of the Bank's role in controlling or regulating foreign reserves of Tanzania and to explore the many questions surrounding the decline of the Tanzania shilling. The study proceeds on the assumption that statutory powers vested in the Bank of Tanzania to regulate or control foreign reserves have little influence in the globalized economy and that the factors determining external reserves are thus far beyond the legal powers of control by the Bank. The study discusses, inter-alia, the brief history of the development of the Bank of Tanzania, control of foreign exchange in historical perspective (prior to and after 1992), factors for determining rate of exchange, the law, practice and management of foreign reserves in Tanzania. The work concludes that the optimum level of the gold and other foreign exchange reserves depends mainly on the exchange rate system in a given country and the constraints under which the reserves are managed by the authorities and the availability of foreign capital. It further concludes that exchange rate is determined by the market forces of supply and demand of the currency in question. The market forces are, in turn, determined by the value of exports over imports. The study establishes that despite the enormous powers vested in the Bank of Tanzania, the Bank only indirectly influences the exchange rate or value of the shilling.