By Veronica Kazimoto – MAELEZO
Dar es Salaam
THE GOVERNOR of Bank of Tanzania Prof. Benno Ndullu has launched the enhanced Government Securities System (GSS) embedded with a book entry system so as to increase efficiency in the Government Securities auctions and Central Depository Operations.Prof. Ndullu has said that this Government Securities System will help to facilitate management of various risks, promote secondary market trading and liquidity optimization in the Real Time Gross Settlement System.“In quest of further development of the financial markets infrastructure, the bank found it imperative to enhance the GSS so that it conforms to international best practice and keeps pace with technological advancement.” the Governor said.
The system includes features such as on line bidding for government securities, electronic provision of standby facilities (Intraday and Lombard), unique identification of auction participants and electronic platform for repurchase agreements among others.
Before this system, bidding and settlement of Government securities was done manually until in 1994 where a semi automated system known as Treasury Bills Information System (TBIS) was introduced and settlement was done using both cash and bankers drafts and physical certificates were being issued as evidence of ownership.
In 1999 the Bank introduced the Government Securities System embedded with a book entry system wherein securities were issued in paperless form with connectivity to the Real Time Gross Settlement System.