A draft is an instruction given by us to a foreign bank to pay a beneficiary specified by you. It is for a fixed sum and the value is stipulated in either Tanzanian Shillings or the foreign currency. It can be used to send money abroad for example for gifts, payment for goods purchased, advance travel-related payments and maintenance.

 

Features and benefits

• Obtainable immediately
• Not very secure as there is the risk that they may be lost or stolen and there is no guarantee that the draft will be replaced.
• There can be lengthy clearing delays before receipt of funds.
• If you receive money from another country, you have up to 30 days from receipt of the transfer to convert it into local currency.
• Fees and commission are charged.

Qualifying criteria

• Exchange control regulations - you should not exceed your annual allowance.
• Where relevant, you need to provide required documents, for example, alimony agreement or study details.
• If used as travel allowance:
  • You are required to have a bank account relationship abroad in order to negotiate the draft.
  • A valid ticket to a foreign destination.
  • A valid passport.

Tips and useful information

They are not ideal to use for travel because foreign banks do not always clear the money immediately.