Joseph Isangura
In a major move to protect the strength of the Tanzanian Shilling and reinforce economic independence, the Bank of Tanzania (BoT) has officially banned the use of foreign currencies in domestic transactions.
The directive means that all goods, services, and payment agreements within the country must now be quoted and settled exclusively in the local currency.
This new regulation, announced in a statement dated May 2, 2025, draws authority from Section 26 of the Bank of Tanzania Act, 2006, and is reinforced by the newly gazetted Foreign Currency Use Regulations of 2025, published in Government Notice No. 198 on March 28.
Speaking at a press briefing, BoT Governor Emmanuel Tutuba made it clear: “It is illegal to quote prices or accept payments in any foreign currency for goods or services within Tanzania unless specifically allowed by the regulations. Tanzanian Shillings must be the medium of exchange.”
Governor Tutuba further warned that rejecting Shilling payments, or facilitating payments in U.S. dollars or any other foreign currency, is not only discouraged—it’s a prosecutable offense. The BoT is urging citizens and businesses to report any breaches of the new policy.
The move comes after growing concern that the use of foreign currencies—especially in sectors like hospitality, education, and real estate—was weakening the country’s ability to effectively manage its economy. Analysts say that allowing widespread use of foreign currencies internally can erode monetary policy, distort pricing, and lead to inflation.
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Under the new rules, tourists and foreign visitors are still allowed to convert their money at licensed financial institutions or use international debit and credit cards. However, businesses operating inside Tanzania must now display prices in Shillings and accept only local currency for payments—except in rare and clearly defined cases involving diplomatic or international organizations.
Financial experts view the policy as a necessary step toward strengthening the national economy. “It’s about preserving the sovereignty of our monetary system,” one analyst noted. “Widespread use of foreign currency in everyday transactions limits the central bank’s control over inflation and interest rates.”
The BoT has launched a public awareness campaign to help citizens and business owners understand the new guidelines. Authorities are encouraging the public to be vigilant and report any individual or business that fails to comply.
With the policy now in effect, the central bank hopes the move will boost confidence in the Tanzanian Shilling and contribute to broader macroeconomic stability.
Good move,its just senseless how Real estates developers and other private entities are are giving out price quotations in dollars