Tanzania bans use of foreign currencies for domestic transactions

Bank of Tanzania (BoT) has banned the use of foreign currencies for local transactions, requiring that all goods and services be priced and paid for exclusively in Tanzanian Shillings (TZS).

According to a report by The Kenyan.com seen by Zambia Monitor on Sunday, the BoT announced the move in a statement citing the newly issued Regulations on the Use of Foreign Currency, 2025, under Section 26 of the Bank of Tanzania Act, 2006.

“The Bank of Tanzania wishes to inform the public that, 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 statement read.

As a result, individuals and business owners are now prohibited from quoting or accepting payments in US dollars, Kenyan shillings, or any other foreign currency.

The regulations also mandate that contracts previously denominated in foreign currencies must be amended to comply within one year.

Foreigners, including tourists, are now required to exchange foreign currencies at commercial banks or Bureau de Change outlets before making purchases in Tanzania. However, they may continue to use bank cards or other digital payment methods.

Certain transactions remain exempt and may still be conducted in foreign currency.

These included government contributions to regional and international organisations, embassy -related transactions, transactions by international organisations, foreign currency loans from local financial institutions and purchase from duty-free shops.

The publication noted that these changes are expected to significantly impact traders and businesses, which may incur losses due to currency exchange rate fluctuations.

The BoT has advised all foreigners to comply with the regulations and has encouraged Tanzanian citizens to report any violations to the central bank.