TANZANIA – The Bank of Tanzania (BoT) has granted licenses to 30 hotels, allowing them to operate Bureau de Change services within their premises.
The apex bank said it has approved licenses for hotels graded three stars and above to establish Bureau de Change, which will streamline currency exchange services within the hospitality sector.
By enabling hotels to offer currency exchange services, the central bank seeks to reduce the inconvenience faced by visitors who previously had to seek out separate bureau de change facilities.
The licensed hotels must adhere to the BoT’s regulations and guidelines for bureau de change operations, ensuring compliance with anti-money laundering and counter-terrorist financing measures.
One advantage for the hotels granted licenses is the exemption from needing capital. Typically, bureau de change operators must have a starting capital of no less than TSh200 million (US$73,644) and no more than TSh1 billion (US$368,220). However, the hotels granted licenses to run currency exchange need no minimum capital.
Mr. Gwamaka Charles, the BoT Senior Inspector for Financial Sector Supervision, stated that the initiative simplifies the currency conversion procedure for foreign and local visitors.
“We have granted licenses to over 30 hotels across the country, enabling them to offer bureau de change services within their premises,” Mr Charles remarked during the unveiling of a new bureau de change at the Hyatt Regency Hotel in Dar es Salaam.
“Such development not only provides convenience for guests but also ensures all procedures are conducted legally and by the law,” he added.
He also emphasized the importance of the bank’s directive that all transactions in the country be carried out using the local currency.
The move also curbs the risk of a 14-year sentence, as exchanging currency without the proper license can result in the aforementioned jail time.
With hotels having licenses to carry out this transaction, there is less illegality in the field.
This initiative began in 2023 when the BoT urged all three-star and higher-rated tourist hotels in the country to open bureau de change or foreign currency windows to bring services closer to guests and reduce black-market operations.
The latest decision to license hotels for Bureau de Change operations is part of the apex bank’s efforts to improve the availability and efficiency of foreign exchange services in Tanzania.
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