Tanzania Officially Bàn Use of Foreign Currency for Local Transactions

The Bank of Tanzania has officially banned the use of foreign currencies, including the US dollar, for domestic payments.

In a notice issued Thursday, the central bank declared that all goods and services within Tanzania must now be priced and paid for strictly in Tanzanian Shillings (TZS).

“It is an offence to quote, advertise, or accept payment in foreign currency, or to refuse TZS payments,” the notice stated, emphasizing that the regulation applies to all, including foreigners and tourists.

While some previously signed contracts in foreign currencies may still be honored temporarily, all new or renewed agreements must comply with the local currency requirement. The only exceptions are for specific transactions permitted under the law, such as payments through authorized financial institutions.

Tourists and other foreigners must exchange foreign currency at commercial banks or licensed Bureau de Change outlets. They may still use bank cards and digital payment methods for transactions.

The central bank, led by Governor Emmanuel M. Tutuba, urged the public to report any violations to relevant authorities, including the Bank of Tanzania, Financial Intelligence Unit, and the police.

This policy shift follows increased concerns over the dollarization of local markets, which the bank says has been undermining monetary policy. It comes amid the sharp decline of the Tanzanian shilling, now trading at TZS 2,692 per US dollar as of May 4, making it one of Africa’s worst-performing currencies in 2025.

In March, the government had already introduced foreign exchange regulations to reinforce the use of TZS in domestic transactions, but the currency has continued to face pressure due to broader economic challenges. [CONTINUE READING HERE]>>>>