John AdoyiThe Bank of Tanzania (BoT) has banned the use of foreign currencies for domestic transactions, ordering all businesses to conduct trade only in Tanzanian shillings.
The new directive, announced in a statement late Friday, takes immediate effect.
Join our WhatsApp Channel“The Bank of Tanzania wishes to inform the public that, by the provisions of Section 26 of the Bank of Tanzania Act, 2006, the Government has issued the Regulations on the Use of Foreign Currency, 2025,” the statement read.
“Under these Regulations, pricing and payment for all goods and services within the country must be in Tanzanian Shillings. Therefore, it is an offense to quote, advertise, or indicate prices in foreign currency, to compel, facilitate, or accept payment in foreign currency, or to refuse payment made in Tanzanian Shillings,” the central bank stated.
The move aims to strengthen the Tanzanian shilling and reduce the economy’s reliance on foreign currencies, a challenge faced by several African nations. By enforcing transactions in the local currency, the government hopes to stabilize exchange rates, curb inflation, and assert greater monetary control.
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The new rules also require that existing contracts denominated in foreign currencies be amended within one year to comply with the law. However, the BoT noted some exceptions, stating: “Certain foreign currency transactions will still be allowed, such as contributions to regional organisations, transactions involving embassies, and dealings with international organisations.”
Foreigners, including tourists, must exchange their money through commercial banks or licensed Bureau de Change outlets, though they can still use bank cards and digital payments.
While some businesses welcome the decision, others worry about enforcement challenges, particularly in sectors like tourism and real estate that often deal in dollars. The BoT has assured sufficient shilling liquidity to ease the transition.
The government has called on the public to report violators and urged foreigners to comply to avoid penalties.
- John Adoyi
- John Adoyi
- John Adoyi
