MWE Correspondent
The government of Tanzania has officially banned the use of foreign currencies — including the U.S. dollar — for domestic transactions.
The new measure, which came into effect in March 2025, mandates that all payments for goods and services within the country must be conducted in Tanzanian Shillings (TZS).
The Bank of Tanzania (BoT) issued a statement reinforcing that under the Bank of Tanzania Act, 2006, any pricing, advertising, or payment in foreign currency is now deemed illegal. The regulations apply to all individuals, businesses, government entities, and financial institutions operating within the country.
“It is an offense to quote, advertise, or transact in foreign currencies, or to reject payments made in Tanzanian Shillings,” the central bank’s statement read.
This move is part of a broader trend toward de-dollarization — a policy initiative embraced by a growing number of nations seeking to reduce dependency on the U.S. dollar in favor of their own currencies. De-dollarization efforts are gaining momentum globally, particularly among the BRICS nations — Brazil, Russia, India, China, and South Africa — which have been vocal about creating a more multipolar financial system.
Tanzania now joins a list of countries that are reassessing their exposure to the dollar, citing concerns over external economic shocks, inflation vulnerability, and the desire for stronger control over monetary policy.
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Foreign tourists visiting Tanzania can still exchange their money through licensed bureaux de change, but are required to use Tanzanian Shillings for transactions within the country. While physical cash transactions in foreign currencies are banned, payments made via international debit or credit cards — typically settled through approved bank networks — are still permitted.
The impact of this move is already being felt in key sectors such as tourism, aviation, and real estate, which have traditionally accepted or advertised in dollars.
Officials argue that the change will promote transparency, fairness in pricing, and strengthen the domestic economy. “This is about reclaiming control over our monetary system,” one senior BoT official explained. “We want the Tanzanian Shilling to be the anchor of all local economic activity.”
Critics, however, warn that the transition could present short-term challenges for exporters and international investors accustomed to dealing in widely accepted global currencies like the dollar. Some businesses have expressed concern over the administrative burden of converting foreign payments, especially those reliant on cross-border trade or imports.
Despite that, financial experts say the move reflects a growing confidence in Tanzania’s fiscal stability and aligns with long-term goals to deepen local capital markets and support economic resilience.
