Many countries have a very similar set up of central banks responsibilities such as Financial Market...

Many countries have a very similar set up of central banks responsibilities such as Financial Market Stability, Monetary Policy and issuing currency. The central authority of the Tanzania money and banking system is the Board of Directors of the Bank of Tanzania.

Required:

Critically describe the purpose and membership of the Board of Directors of the Bank of Tanzania.

Expert Solution

The purpose:

The Board of Directors (the "BOD") have to led the efforts to direct the Bank of Tanzania (the "Bank") achieve the goals it has been tasked for. The BOD has to ensure that the Bank fulfills its primary objective of leading the country towards a stable and prospering economy.

The Bank had been tasked with multiple responsibilities since the time of its inception:

Issuance and maintenance of circulation of the national currency, the Tanzanian shilling.
To formulate and implement the monetary policy
To make decisions about interest rate changes
Price and exchange rate stability in the long run
Control the usage of foreign exchange to protect national interests
Prevent the local currency, the Tanzanian shilling, from devaluation

The BOD has the administrative and functional control of the Bank and is tasked with the responsibility of steering the bank to achieve its stated objectives.

Membership:

A 10 member board comprising of:
- The Governor,
- 3 deputy governors
- 4 non-executive directors,
- The principal secretary to the treasury of the Revolutionary Government of Zanzibar
- The representative of the Ministry of Finance of the Government of the United Republic, and the secretary to the board.
Headed by the Governor
Assisted by the deputy governors towards administration, economic and financial policies and financial stability

jeff jeffy answered 10 months ago

Explain the significance of sequence: money, financial securities, financial market, financial institutions, regulation, and central banks....

Explain the significance of sequence: money, financial securities, financial market, financial institutions, regulation, and central banks. Who are the primary beneficiaries of financial regulation?

During the slow recovery from the global nancial crisis, central banks in many advanced countries kept...

During the slow recovery from the global nancial crisis, central banks in many advanced countries kept their interest rates at historically low levels, which we can interpret as lowering the global interest rate, r. Imagine you are the economic adviser for a small island nation open to international trade. a) How would the fall in the global real interest rate aect the level of Output based on the real money market (LM Curve)? What happens to the LM curve after...

If a set of countries opens up to trade, is it on average likely to have...

If a set of countries opens up to trade, is it on average likely to have a positive or negative effect on the environment for a given level of income?

QUESTION ONE During the onset of the global financial crisis many of the world’s central banks...

QUESTION ONE During the onset of the global financial crisis many of the world’s central banks and governments prevented large banks to fail. If these institutions had allowed this occur there would have been large-scaled bank failure which would have had a negative impact on bank deposits. Using the Keynesian model illustrate and explain the impact of a large-scale bank failure on planned aggregate expenditure. QUESTION TWO An economy is initially in a recession. Using the aggregate demand and aggregate...

how many banks does the United States have compared to other countries? That is, many more...

how many banks does the United States have compared to other countries? That is, many more or far fewer? Briefly, what factors explain the great disparity?

Explain why in recent years central banks in numerous developed countries have resorted to a near...

Explain why in recent years central banks in numerous developed countries have resorted to a near -zero interest rates or negative interest rate . Make sure to explain what is meant by negative interest rate policy . Which are macroeconomic consequences of such a policy ? Explain.

Many of the central banks of the leading world economies have for years been actively working...

Many of the central banks of the leading world economies have for years been actively working for very low interest rates. What impact has this had on asset prices? Please explain. Use the CAPM to provide a frame of reference for your discussion

1.Why do countries with less independent central banks tend to have higher inflation rates? Is it...

1.Why do countries with less independent central banks tend to have higher inflation rates? Is it possible for the central banks to increase output and reduce unemployment in the long run? In the long run, is the German model a good one? Explain why or why not. 2. In your opinion, what are the top three challenges in the global economy we face in the near future?

In recent years, central banks have dramatically increased the amount of communication with market participants and...

In recent years, central banks have dramatically increased the amount of communication with market participants and the public, and at the same time in many of these countries, average inflation has declined and become less volatile. Is this coincidence, or is there a connection? Explain

Assume that countries A and B are of similar size, that they have similar economies, and...

Assume that countries A and B are of similar size, that they have similar economies, and that the government debt levels of both countries are within reasonable limits. Assume that the regulations in country A require complete disclosure of financial reporting by issuers of debt in that country, but that regulations in country B do not require much disclosure of financial reporting. Explain why the government of country A is able to issue debt at a lower cost than the...

Question