Tuesday, 2 February 2010

Where is the sense in trading local goods and services in US dollars?

From ThisDay, Dar es Salaam
By Ibrahim Werrema

HERE used to be world class hotels with service rates in two categories: That of residents, which would be in Tanzanian shillings and that of non-residents understandably in foreign currencies, and mostly in US dollars. Some hoteliers are now advanced to such a level of getting rid of the local currency group – they nowadays only charge in dollars!

If you go around Dar es Salaam, Arusha, Moshi and Mwanza, don’t be surprised to find Tanzanian local goods and services with price tags in USD. I have seen a whole wide range of goods and services priced in US dollars, from rental office spaces to residential apartments to hotel rooms, to clothing and furniture to automobiles to boutiques all the way to groceries! Worse is when the sellers refuse to accept paying in equivalence. They would tell buyers to go wherever they can go with their “madafu money” and come back with deserved dollars.

Read full story >> - click on the headline.

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