The Bank of Tanzania (BoT) has officially issued a public notice titled “Prohibition on the Use of Foreign Currency for Local Transaction/Payments Within the United Republic of Tanzania”, marking a significant policy shift aimed at reinforcing the use of the Tanzanian Shilling (TZS) in domestic economic activities.
According to the notice, issued on May 2, 2025, and signed by Governor Emmanuel M. Tutuba, the new directive is grounded in the Regulations on the Use of Foreign Currency, 2025.
It stipulates that all pricing, quotation, and payment for goods and services within Tanzania must be made exclusively in Tanzanian Shillings. The regulation applies across all sectors and transactions conducted within the country.
Under the new rules, it is now an offense to quote, advertise, or display prices in any foreign currency. Similarly, compelling, facilitating, or accepting payment in foreign currency whether in cash or otherwise is strictly prohibited. Refusing to accept payments made in Tanzanian Shillings also constitutes a breach of the law.
The Bank of Tanzania emphasizes that this measure is part of a broader strategy to strengthen the national currency, enhance monetary policy effectiveness, and promote economic stability.
By ensuring the dominance of the Tanzanian Shilling in all local transactions, the government aims to reduce reliance on foreign currencies and minimize exchange rate volatility.
While the regulation is comprehensive, exceptions do exist for certain authorized transactions permitted to be conducted in foreign currency.
These include specific cases sanctioned by the Bank of Tanzania or other competent authorities. Additionally, existing contracts that currently stipulate payment in foreign currency are allowed a grace period to comply, with full enforcement commencing on March 28, 2025.
Tourists and foreign nationals are still allowed to use internationally accepted payment methods, including credit and debit cards.
However, physical foreign currency must be exchanged through licensed commercial banks or Bureau de Change operating within Tanzania.
To support enforcement, the BoT has urged the public to report any violations of these regulations. Reports can be submitted to the Financial Intelligence Unit (FIU) via email at fx.regulations@bot.go.tz, or to the Police and other relevant law enforcement agencies.
This regulatory move underscores Tanzania’s commitment to promoting financial sovereignty and economic discipline.
The Bank of Tanzania has provided contact details for further inquiries and encourages all stakeholders to comply with the directive to ensure a smooth transition and national economic resilience.