THE Bank of Tanzania (BoT) has supported the decision to restrict the use of dollars, saying the move will strengthen the value of Tanzanian shillings.

Marwa Patrick, central bank’s economist, Monetary Policy Department made the remarks during an interview with this paper at this year’s Dar es Salaam International Trade Fair (DITF).

“We believe that this is a good move which will help to reduce pressure available together with strengthening the shilling because the government institutions were also offering services in dollars,” he said.

He added: “For example a person commits crime but he or she is required to pay in dollars so we believe that the restriction will strengthen our shilling.”

Marwa said with the step, there are still enough reserves for foreign currencies which are sufficient for the use of more than four and a half months as the Governor has been insisting.

“Therefore, even to any investors who order or people who need foreign currency, we give them the assurance that they should have faith that foreign currencies are available,” explained Marwa.

He added that the country was expecting to get foreign currency in the coming 'high season' of the tourism sector where many people from different countries visit tourist attractions in the country.

Tanzania was now selling its natural beauty to foreign countries which is an assurance that the shilling will continue to strengthen," added Marwa.

He also said the value of the shilling against the US dollar was at 2,620/- and added that BoT believes that the trend will continue to improve.

Finance Minister, Dr Mwigulu Nchemba ordered by July1st, all public institutions that offer services to offer the services in shillings.

Already some institutions such as the Forest Service Agency (TFS) and the Tanzania National Parks (TANAPA), have announced they will offer services in shillings.

On Monday, some tour operators in northern regions have rejected the government’s order that requires all payments be in Tanzanian shillings.