Dar es Salaam — The Bank of Tanzania (BoT) announced on Thursday, December 28, that its Board of Directors approved Sh300 billion as dividend to the government for 2016/17 after making profits.
The money makes a total of Sh780 billion approved as dividend to the government in the last three financial years, according to a statement issued by office of the governor today.
"The core function of the central bank is not making profits but when it happens, a large share of it is given to the government as dividend," the bank stated.
Section 18(5) of the Bank of Tanzania Act 2006 gives it the authority to issue dividend to the central government when the bank makes profit.
In 2014/15, the central bank issued Sh300 billion in dividends and also delivered Sh180 billion in 2015/16, according to the statement.
According to the law, the primary objective of the bank is to formulate, define and implement monetary policy that maintains domestic price stability, conducive to a balanced and sustainable growth of the national economy.
Other functions include issuing notes and coins of the local currency; supervising banks and financial institutions; supervising national payment systems; guarding international reserves and foreign currencies.