Tanzania unveils new forex exchange regulations

Tanzania has recently unveiled new forex exchange regulations aimed at curbing surging inflation and boosting the country's economy. The new Foreign Exchange Act of 2022 replaces previous acts from 1998 and 2003, with significant changes to facilitate forex trading, current account transactions, and capital financial transactions. Ahmad Nganya, Manager of Advisory and Capital Markets at Vertex International Securities Limited, shared insights into the impact of these regulations. The Act allows individuals to have a brokerage account with a foreign forex broker, as long as they maintain a local account in Tanzania. Additionally, residents from other countries can now invest in Tanzanian government securities. This change is expected to attract more foreign investments and stimulate economic growth. The government's decision to implement these measures comes at a time when the overall sentiment towards Tanzania's economy is positive, with foreign investors showing interest and confidence in the country's leadership under President Mama Samia Suluhu Hassan. The move is seen as a strategic step towards opening up the economy and attracting more foreign investments. The Dar es Salaam Stock Exchange (DSE) has been a stronghold in the region, and these new regulations are expected to further enhance its growth. Despite a small institutional investor base, the DSE has benefited from foreign buyers, and the new rules are anticipated to maintain this momentum, as long as equity remains attractive and the market stays competitive. The future looks promising for Tanzania's economy and the investment landscape, as the country positions itself as a favorable destination for international investors.