May 12, 2020 / 9:42 AM / 16 days ago

Tanzania central bank lowers reserve requirements due to coronavirus

NAIROBI, May 12 (Reuters) - Tanzania’s central bank lowered the statutory minimum reserves requirements for commercial banks to 6% from 7% and cut its discount rate for banks, to cushion the economy from the effects of the coronavirus crisis, it said on Tuesday.

The reduction of the reserves will come into effect on June 8 to provide additional liquidity to banks, governor Florens Luoga said in a statement.

The bank also cut its discount rate for lending to banks to 5% from 7% to “provide additional space for banks to borrow from the Bank of Tanzania at a lower cost, thus signalling lower lending rates by banks”. (Reporting by Omar Mohammed Editing by Duncan Miriri and Alison Williams)

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