Tanzania – May 2, 2025 – The Bank of Tanzania (BoT) has formally prohibited the use of foreign currencies for domestic transactions, reaffirming a longstanding regulation aimed at strengthening the use of the Tanzanian Shilling as the sole legal tender in the country.
In a public notice issued today, BoT Governor Emmanuel M. Tutuba emphasized that the directive takes immediate effect and is rooted in Section 26 of the Bank of Tanzania Act, 2006.
The regulations were published in the Government Gazette No. 198 on March 28, 2025.
According to the notice, all goods and services within the borders of Tanzania must now be priced and paid for in Tanzanian Shillings.
It is a legal offense to quote, advertise, or demand payment in foreign currencies for any local transaction.
Businesses and individuals are also barred from facilitating or accepting foreign currency payments or refusing payments made in the national currency.
“These measures are designed to promote economic stability and enhance the effectiveness of monetary policy by ensuring the Tanzanian Shilling remains the dominant medium of exchange within our economy,” the BoT stated.
The new regulations, however, acknowledge certain exceptions. Contracts that were agreed upon before March 28, 2025, and which require payment in foreign currencies, are subject to a limited grace period. However, entering into or renewing such contracts from that date forward is strictly prohibited.
For foreign nationals, including tourists, the BoT clarified that foreign currency should be exchanged through authorized commercial banks or Bureau de Change outlets. While cash payments in foreign currency are banned, visitors can still use internationally issued bank cards or digital payment platforms for their purchases.
The central bank is encouraging members of the public to report any violations of these regulations to the Bank of Tanzania, the Financial Intelligence Unit (FIU), the Police Force, or any other relevant law enforcement authority. Reports can also be sent via email to: fx.regulations@bot.go.tz.