MANYARA: THE Bank of Tanzania (BoT) has directed all commercial banks in Manyara Region to accept worn-out and damaged banknotes for assessment and exchange, following complaints that some banks were refusing to receive them.
The directive was issued recently by BoT Arusha Operations Manager, Mr Cletus Mwakalinga, during the Tanzanite Manyara Trade Fair at Tanzanite Kwaraa grounds.
Mr Mwakalinga said commercial banks must accept eligible banknotes in line with the central bank’s guidelines, urging members of the public to report any bank that refuses to receive them.
He also urged the public to handle banknotes carefully, noting that producing replacement currency costs the government money.
He said some people, particularly women, fold and tie banknotes inside khangas, causing deep creases that accelerate their deterioration.
ALSO READ: BoT builds gold reserves to strengthen economy
Mr Mwakalinga said worn-out or damaged banknotes should be taken to commercial banks for assessment and possible exchange.
He stressed that banknotes must be genuine, retain at least 75 per cent of their original surface and show no signs of deliberate damage to qualify for replacement.
He warned against deliberately damaging currency by tearing or burning banknotes, urging the public to store money properly to prevent premature deterioration.
Mr Mwakalinga explained that the BoT formulates and implements monetary policy to control inflation and maintain financial stability in support of sustainable economic growth.
He called on the public to cooperate with commercial banks by presenting eligible worn-out banknotes for assessment and exchange.