Tanzania's monetary supervision and regulation system has managed to limit the damage resulting from this aspect. Some financial institutions may take additional prudent borrowing as they replicate immature lending and currency engineering. Recently, there has been a huge increase in the number of foreigners collaborating in the money markets of developing economies as a result of higher returns. The flight to safety caused by the monetary crisis has forced investors to sell their assets in riskier economies. The Tanzania Stock Exchange is relatively new and extremely inactive in securities mercantilism, thus protecting it from crisis through unliberalized associated capital that limits the direct and legal participation of foreigners. While other stock markets, including Kenya's capital and urban centres, are hit by the financial crisis, the impact on the Dar es Salaam (DSE) stock market has been attributable only to the few foreign investors. Tanzania also has some exchange controls that prohibit the flow of international capital limiting the impact of contagion from currency markets. Indirect effects are not directly linked to the monetary sector, however additional linkages between economies and sectors are associated. Linkages between Tanzania and affected economies vary from simple trade, investment, aid, grants and payment flows to complex rate discovery for money and non-financial products. Let's scratch the surface: if the United States, with a 25% share of the world's gross domestic product, slows down, it will certainly have control over the entire world economy, along with Tanzania. For Tanzania, the national budget, which has substantial donor funding, will be affected if donor commitment... middle of paper... missions, particularly gold, increase in value and are currently considered as a safe asset. haven for investors looking to protect their wealth. A combined reduction is expected in the tourism and horticultural sectors. The flow of foreign currency can affect the financial value of Tanzania which has not depreciated recently, but it is unpredictable. Tanzania's lower external debt, higher external reserve levels, prudent management of commercial enterprises, coupled with debt markets with a capitalist base whose dependence on foreign investors is insignificant, will diminish the effects of the monetary crisis on the national economy . The contained impacts on the different sectors translate into a controlled effect on the economy. The results on the economy are unlikely to last as economic agents make changes and affected economies begin to awaken.
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