Boost exports to tackle dollar scarcity, CTI told

 

Increase exports to deal with dollar shortage, CTI said

Dar es Salaam. The government has asked manufacturers to invest more in value-added products for export as a way to mitigate the impact of the US dollar shortage on the economy. Minister of Finance Dr. Mwigulu Nchemba said on Monday that Tanzania will earn enough from forex. But manufacturers say that can only be possible if they are prioritized in the government's dollar payout plan. They also want the government to adopt a system where manufacturers with subsidiaries in other countries can do what is called a currency swap. also suggested the need for a currency swap. 

As entrepreneurs, if we have parent companies and can borrow dollars from abroad, we can use this procedure to reduce the current shortage of dollars,” said Confederation of Tanzania Industry (CTI) Chairman, Dr. Samuel Nyantahe. Dr. Nchemba and members of CTI, where the problem of lack of dollar came to the fore, Dr. Nyatahe said it was also important for Tanzanians to support the "Buy Tanzania, Build Tanzania" initiative. glass that is used in various buildings under construction that could be used locally. 

We demand that we use our own to buy our local products, to slow down the use of dollars to buy products from abroad,” he said. Dr. Nchemba, however, urged CTI members to invest more in value-added products for export. bring in more forex. He said the move would be possible if manufacturers put emphasis on producing goods that are in high demand locally, reducing the level of imports that deplete dollar reserves. However, to achieve this goal, the Confederation needs to prioritize the use of domestic products over foreign ones. Dr. Nchemba said manufacturers need to increase their efforts in producing the products that are currently being imported because local factories can produce them in the required quantity and quality.

 “We should also increase production for export so that we can continue to earn dollars. The government will continue to work with you on ways to stimulate local activities and use locally available funds," said Dr. Nchemba. He said the government and members of the private sector must come up with a plan to promote locally produced products. to end the belief among Tanzanian consumers that products from outside the country are of better quality than products produced locally.

 According to him, in order to ensure the ability to produce for foreign markets, the government is in the final stages of reviving the system of export guarantees for manufacturers who sell their products abroad.” This matter is in the final stage. The scheme focuses on supporting manufacturing activities. Very soon, export-oriented factories will start to benefit from this," said Dr. Nchemba. He urged manufacturers to stop looking at the Bank of Tanzania (BoT) dollar disbursement policy as a solution to the problem. Instead, he said that increasing exports is the only permanent solution to the problem.

 "BoT intervention only comes when the situation is out of control, but the sustainable solution is to increase production for export," emphasized Dr. Nchemba.He said the government remains optimistic that the situation will soon return to normal. With rising inflation in the United States comes the Federal Reserve, which has the primary responsibility for setting interest rates, managing the money supply, and regulating financial markets. with measures that will eventually reduce the flow of the US dollar around the world, affecting Tanzania and other countries equally. Provided by SyndiGate Media Inc.

In today's global economy, currency scarcity can pose significant challenges for businesses, especially those heavily reliant on international trade. The shortage of dollars can hamper growth and limit opportunities for expansion. However, experts at the Center for Trade and Investment (CTI) have identified a promising solution to combat this issue: boosting exports. In this article, we will delve into the insights provided by CTI and explore the strategies and relative keywords to address the pressing issue of dollar scarcity.

Understanding Dollar Scarcity

Before diving into solutions, it's crucial to comprehend the root causes of dollar scarcity. Several factors contribute to this issue, including a trade imbalance, decreased foreign exchange earnings, and global economic fluctuations. In many cases, countries find themselves with insufficient dollars to meet their international financial obligations, which can disrupt trade and economic stability.

Expanding exports is an effective strategy to address dollar scarcity. When a country exports more goods and services, it generates foreign currency, including dollars, which can be used to meet international obligations, stabilize exchange rates, and promote economic growth. CTI emphasizes the following reasons why boosting exports is vital:

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Addressing dollar scarcity is a pressing concern for many nations in today's interconnected world. However, the insights provided by the Center for Trade and Investment offer a roadmap to tackle this issue effectively. By focusing on strategies to boost exports, nations can create a sustainable solution that not only addresses currency scarcity but also promotes economic growth and stability. Implementing export expansion measures, as recommended by CTI, is a crucial step toward a brighter economic future.