Tanzania: Security reasons made BOT print new notes

THE government has defended its decision to introduce new bank notes into circulation, saying the move was driven by security reasons as well as embracing new technological trends.

It also insisted that Tanzania was among the countries where the problem of fake notes is rampant.

Deputy Minister for Finance and Economic Affairs Perreira Silima told the National Assembly that new electronic technology compounded the problem of manufacturing of fake bank notes.

"Development of latest electronic technology has escalated the problem due to the capability of reproducing coloured photos more easily," he said.

He, therefore, said there were no fundamental reasons for piling blames on the Bank of Tanzania (BoT) for the existence of fake bank notes in the streets.

The Deputy Minister was answering Ms Christina Lissu Mughwali (Special Seats- Chadema) who wanted to know the reason behind printing of new bank notes.

The MP also wanted to know efforts being made to curb the spread of fake bank-notes.

Mr Silima said the central bank routinely prints new bank notes outside of the country by contracting printers as per procurement procedures.

He told legislators BoT's contract with former printer expired in 2008, hence the need for acquiring services of a new one and have new notes printed.