BoT able to monitor informal funds in circulation
Technological advances have made it easier for the Bank of Tanzania (BoT) to monitor how much money is circulating in the informal sector.Technological advances have made it easier for the Bank of Tanzania (BoT) to monitor how much money is circulating in the informal sector.
According to the organisation, about 35 per cent of the total amount of money in circulation is doing so on a formal basis.
"The rest is not," said Professor Benno Ndulu, governor of the BoT, as quoted by the Tanzania Daily News.
However, the emergence of mobile money transfer technology has enabled the institution to keep an eye on the circulation of funds.
As a result, it has been able to improve its financial and macroeconomic policies, with a view to achieving better economic equilibrium in Tanzania and correcting this problem.
Vodacom Tanzania is a particularly keen advocate of mobile money transfer technology.
The company uses the M-Pesa service, which it believes is "safe and reliable", as well as able to be accessed anywhere in the country.