CENTRAL BANK; NEW CURRENCY; CHAIRMAN OF BANK, MR. E. MTEI




Initials



Script is copyright Reuters Limited. All rights reserved

Background: TANZANIA YESTERDAY (TUESDAY) BEGAN ISSUING ITS OWN BANKNOTES AND COINS, MARKING THE COUNTRY'S BREAK WITH AN ASSOCIATION WITH THE EAST AFRICAN CURRENCY BOARD AFTER MORE THAN FORTY YEARS.

THE FIRST ISSUE OF THE NEW TANZANIAN CURRENCY IS WORTH GBP20-MILLION STERLING. THE NEW NOTES ARE VALUED AT 100 SHILLINGS, TEN SHILLINGS AND FIVE SHILLINGS.

TANZANIA SHARED THE EAST AFRICAN CURRENCY BOARD WITH KENYA AND UGANDA. INITIALLY, TANZANIA'S NEW CURRENCY WILL REMAIN PAR WITH KENYAN AND UGANDAN CURRENCY, WHICH ARE BOTH AT PAR WITH STERLING.

PRESIDENT NYERERE, INAUGURATING THE NEW CURRENCY, SAID TANZANIAN'S FINANCIAL RESERVES AND ITS BASICALLY STRONG ECONOMY SHOULD EARN IT RESPECT THROUGHOUT THE WORLD.

HE REGRETTED THE BREAK WITH THE CURRENCY BOARD, AND SAID HE WOULD HAVE BEEN HAPPY TO HAVE ATTENDED THE INAUGURATION OF A FEDERAL CENTRAL BANK.

IF AN EAST AFRICAN FEDERATION WAS EVOLVED THE THREE NATIONAL CURRENCIES WOULD HAVE TO BE RE-MERGED. BUT, SAID PRESIDENT NYERERE, FOR PRESIDENT A TANZANIAN BANK WAS ESSENTIAL.

HE SAID IT WAS IMPOSSIBLE TO PLAN ECONOMIC DEVELOPMENT IF CURRENCY AND CREDIT WERE OUTSIDE THE GOVERNMENT'S CONTROL.