A week after the Central Bank of Kenya (CBK) launched the new Kenyan currency, the Bank of Tanzania has suspended currency exchanges between the Kenyan and Tanzanian currency.
In a statement, the Bank of Tanzania said they were suspending cash flow actions from the CBK in order to crash illegal cash flows in the country.
“With a view to combat illicit financial flows and counterfeits into the Republic of Kenya, the Bank of Tanzania has been advised to freeze CBK Currency Collection Account with immediate effect.’’
As a result, everyone who still had the old Kenyan notes in Tanzania was supposed to go and change them in Kenya with the new notes that were under the CBK recommendations.
This new currency change was a huge setback to Kenyan traders who exchange and trade money in Tanzania where the currency usually does well.
The CBK has already given people guidelines on how to exchange their money. If one is in possession of Sh1 million in old notes they would not need a bank account and could visit any bank to exchange the money.
While anyone in possession of Sh1 million – Sh5 million would be requested to visit a bank in order to exchange their money.