Tanzania's Central Bank launches new online system for securities auction
The Bank of Tanzania (BoT) has launched on August 31st an online system for the bidding of government securities, aimed at increasing the efficiency of the bidding system.The Bank of Tanzania (BoT) has launched on August 31st an online system for the bidding of government securities, aimed at increasing the efficiency of the bidding system.
It allows investors to bid for bills and bonds online and receive instant acknowledgement via email.
BoT Governor Prof Benno Ndulu told reporters in Dar es Salaam that the new homegrown system puts the country ahead of other economies in the region and offers a combination of online bidding and Central Depository Services (CDS), Tanzania Daily News reports.
He said that the old system had to be upgraded as it was not interactive, did not comply fully with fax and telephones, while traders had to personally present bidding forms.
The system is currently limited to a select group of participants to be known as Central Depository Participants (CDP), consisting of banks and licensed brokers, according to the Central Bank.
Any investors wishing to participate in the auctions would have to pass through the CDP.
The BoT governor said that the economic outlook was considerably good, adding that government revenues surpassed normal expenditure during the 2011/12 fiscal year, with 7.2tr shillings collected (€ 3.6 billion) against 6.9tr of normal expenditure.