Tanzania Bans Use of Foreign Currency for Local Transactions

Tanzanian government has officially banned the use of foreign currencies, including the US dollar and British pound for buying and selling goods and services within the country. The new regulation, enforced by the Bank of Tanzania (BoT), requires all transactions inside Tanzania to be made strictly in Tanzanian shillings.

According to the BoT, this policy aims to protect the Tanzanian economy, address the ongoing foreign exchange shortage, and encourage the use of the local currency. This new rule, announced by the Bank of Tanzania, is part of efforts to boost the local currency and ease the pressure caused by the ongoing shortage of US dollars. For over a year, Tanzania has struggled with low foreign currency reserves, making it harder to import goods and affecting local businesses.

Under this new law, it’s now illegal for any business to list prices in foreign currency or accept dollars or pounds for payment. This includes popular tourist spots, big hotels, shopping malls, and even some government agencies that used to accept foreign money

Only specific exceptions apply such as certain international transactions which are still allowed to be conducted in foreign currencies. However, contracts involving foreign currency are now restricted, and businesses are no longer permitted to enter or renew agreements priced in anything but Tanzanian shillings.

If you’re visiting Tanzania, you’ll still be able to pay using bank cards or mobile money. But if you have cash in foreign currency, you’ll need to exchange it at a licensed bank or currency exchange bureau. It’s now against the law for businesses to accept dollars or any foreign currency directly.

The Bank of Tanzania, led by Governor Emmanuel Tutuba, emphasized that this change falls under the “Regulations on the Use of Foreign Currency, 2025,” as mandated by Section 26 of the Bank of Tanzania Act, 2006.

The Bank of Tanzania has asked the public to report any business that breaks these rules. Reports can be made to the Financial Intelligence Unit, the police, or other authorities.

This is a great move to strengthening Tanzania’s economy and promoting the use of the Tanzanian shilling in all local financial transactions.