GOVERNMENT’S costcutting measures, particularly the restriction of foreign trips and crackdown against tax evaders have bolstered the gross foreign official reserves to cover 4.4 months.
Commenting on the Bank of Tanzania (BoT)
monthly economic review for June, a senior lecturer at the University
of Dar es Salaam, Prof Humphrey Moshi, said the government measures have
had positive impact on the economy.
“Restriction of foreign trips and
tightening of tax collection measures have contributed in strengthening
the foreign exchange reserve,” he said.
He said previously some dishonest
importers collaborated with few tax collectors and used loopholes to
evade tax. According to BoT, the fall of the import bill is one of the
major reasons that affected the gross foreign official reserves to cover
4.4 months of imports.
The fall in import bill, particularly
oil, followed a significant drop in prices in the world market. Gross
foreign official reserves amounted to 3,855.8 million US dollars
compared to 4,402.4 million US dollars at the end of June 2015.
The reserves were sufficient to cover
4.4 months of projected imports of goods and services, excluding those
financed by foreign direct investment, more than 4.2 months in June
2015. Meanwhile, gross foreign assets of banks amounted to 831.9 million
US dollars.
Import of goods and services amounted to
11,336.3 million US dollars in the year ending June 2016, lower by 15.2
per cent than the corresponding period in 2015. The decline was notable
in all goods import, save for fertilisers.
A significant decline was recorded in
capital goods, oil, and food and food stuffs. Import of oil
particularly, which accounts for the largest share of goods import,
decreased by 8.5 by civil servants
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