We provide financial market solutions to help manage forex, interest rates, commodity prices and liquidity risks.
FX
Get the best foreign exchange rates.
Cash flow
Manage liquidity and diversify your investments.
Protection
Hedge against the negative impact of FX rate fluctuations.
Budgeting
Easily project cash flows for effective and accurate budgeting.
Grow your business’ investment
We have a range of solutions to help you manage your day-to-day foreign exchange requirements.
Spot Forex exchange
Buy or sell foreign currency at an agreed rate for delivery in two business days.
Features
- Ideal for businesses dealing in currencies other than TZS
- Payment done at spot (usually within two business days)
- Rate determined at point-of-sale
Forward Forex exchange
Buy or sell foreign currency for future delivery and protect yourself against fluctuations in forex rates. Contact our foreign exchange (FX) experts to find out more about futures trading.
Benefits
- Protection against the negative impact of exchange rate fluctuations
- Manageable and projectable cash flows
- Customised delivery dates
Option Forex exchange
Allows you to benefit from favorable exchange rate movements. These options are less risky and are highly recommended for import and export.
Benefits
- Cost-effective
- Can be used to limit losses
- Higher potential returns
| Call option (exporters) | Put option (importers) | |
|---|---|---|
| Favourable | Depreciating TZS | Appreciating TZS |
| Benefit | Receive more TZS from exchanging foreign currency | Exchange less TZS to obtain foreign currency amount |
| Exercise | Yes. If spot exchange rate is greater than strike rate (agreed rate) | Yes. If spot exchange rate is less than strike rate |
Over-the-counter FX trading
Buy or sell USD, EUR and GBP foreign currency at any of our branches throughout the country, even if you don’t bank with us.
Benefits
- Quick and convenient over-the-counter FX transactions
- Also available to non-NBC customers
- Rate determined at point-of-sale
Take control of your forex trading
We offer risk management solutions to help assess and ease the risks resulting from fluctuations in foreign exchange (FX) rates, interest rates and commodity prices.
Benefits
- Create certainty over your cash flow
- Cover against any interest rate hikes
- Manage exposure to changes in commodity prices
Get liability insurance to cover third-party claims
With the exorbitant awards made in civil cases worldwide these days, one cannot run a business of any kind without proper liability insurance.
Money Market deposits
We offer short-term deposits with maturity of up to one year at a fixed interest rate.
Products offered by NBC
- Fixed-term deposits – a fixed amount for a fixed time at a guaranteed fixed rate of interest
- Repos – repurchase agreement for overnight borrowing when dealing with government securities
| Your needs | NBC's solutions |
|---|---|
| You want to secure an investment with a fixed return over a fixed period | Term deposit |
| You want to meet a shortfall in cash position | Repurchase agreement (Repos) |
Treasury Bills and Bonds
Purchase T-bills and bonds from Bank of Tanzania through NBC.
We help clients to buy or sell these securities in the secondary market.
The bills are issued through an auction bidding process, which occurs every Wednesday at Bank of Tanzania.
Why Trade through NBC
- NBC have a solid knowledge of the securities market – good bid price prevailing in the market
- Hassle-free and convenient – settlement is done electronically by us
Interest Rate Swap (IRS)
Offered to Financial Institutions and Corporate: a mutual agreement to exchange interest payments (floating rates for fixed rates or vice versa) at a fixed future date (or a series of future dates).
- Foreign Currency Loans are for clients who wish to hedge interest rate risk embedded in term/project loans
- Foreign and Local Investment are for clients who wish to translate nature of investment from float to fix or vice versa
Interbank Loan
- Solely offered to Financial Institutions when in need of borrowing excess liquidity
Interbank Deposit
- Solely offered to Financial Institutions when in need of investing excess liquidity
Foreign Exchange Swaps
Offered to Financial Institutions and Corporates: a mutual exchange of foreign currency cash flows with an agreement to reverse the exchange at a future date (or series of dates) and fixed price.
SSI (Standing Settlement Instructions)
Standing Settlement Instructions for Non-Account Holders: for non-NBC client to transact Spot foreign exchange Execution with NBC Treasury.
Chinese Desk
Trading in Chinese currencies for clients doing business with China.
Bidding in Government Securities On Behalf of Clients
Clients wishing to invest in Treasury Bills (Tbills) and Treasury Bonds (Tbonds) can do so through NBC.
