The Bank of Tanzania has ordered all commercial banks in Manyara Region to accept worn-out and damaged banknotes for assessment and exchange, following complaints that some financial institutions were refusing to receive them. The directive was issued by the BoT's Arusha Operations Manager, Cletus Mwakalinga, during the Tanzanite Manyara Trade Fair. Mr Mwakalinga said commercial banks must accept eligible banknotes in line with the central bank's guidelines and urged members of the public to report any bank that refuses to receive them.
The BoT has set clear standards for which damaged notes qualify for replacement. 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, Mr Mwakalinga said. He explained that worn-out or damaged banknotes should be taken to commercial banks for assessment and possible exchange, rather than being discarded or kept in circulation.
Mr Mwakalinga urged the public to handle banknotes carefully, noting that producing replacement currency costs the government money. Some people, particularly women, fold and tie banknotes inside khangas, causing deep creases that accelerate their deterioration, he said. He warned against deliberately damaging currency by tearing or burning banknotes, urging the public to store money properly to prevent premature deterioration.
The central bank official stressed the importance of the exchange process as part of the BoT's broader role in formulating and implementing monetary policy to control inflation and maintain financial stability in support of sustainable economic growth. Mr Mwakalinga called on the public to cooperate with commercial banks by presenting eligible worn-out banknotes for assessment and exchange.