By No. 1 Citizen
The Central Bank and the Ministry of Finance have signed a Memorandum of Understanding (MOU) aimed at improving liquidity and operational cash management.
According to a statement, this new framework is designed to streamline financial transactions by minimizing the need for physical cash and encouraging digital transfers.
The MOU was signed by Samuel Yanga Mikaya, 1st Deputy Governor of the Central Bank, and Malual Tap Dhieu, 1st Undersecretary for Finance.
With this agreement, both institutions anticipate significant reforms in the banking system, focusing on enhancing efficiency and security in financial transactions.
During the signing ceremony, Deputy Governor Yanga addressed the media, explaining that the new system will impose limits on the amount of cash individuals can carry, thereby reducing potential risks associated with large sums of money.
Undersecretary Malual also highlighted the importance of the initiative, stating that a formal circular will be issued soon, detailing the specifics of the new banking framework.
He emphasized that the current necessity of carrying bulky cash presents significant security risks and that the new system aims to mitigate these threats by promoting safer digital alternatives.
This MOU marks a crucial step toward modernizing the banking sector and enhancing financial security, which will create a more efficient and secure environment for financial transactions.