Joseph Isangura
Tanzanians will soon have to conduct all local transactions exclusively in Tanzanian Shillings as the Bank of Tanzania (BoT), in partnership with the Ministry of Finance, finalizes regulations to enforce a ban on the use of foreign currencies for domestic payments.
The new law, set to take effect on July 1, 2025, aims to strengthen the national currency and ensure economic stability.
The ban follows recent amendments to the Bank of Tanzania Act, which now prohibits any transactions within the country from being conducted in foreign currencies. Authorities believe this move will help protect Tanzania’s monetary policy, reduce inflationary pressures, and reserve foreign exchange for essential imports.
BoT’s Manager of International Economics and the Real Sector, Villela Waane, confirmed that work on the new regulations is nearing completion. “Once the drafting process is finalized, the regulations will be officially gazetted and made available to the public,” she said.
Waane explained that allowing foreign currencies to circulate freely within Tanzania has weakened the effectiveness of monetary policies and put unnecessary strain on foreign exchange reserves. “Using foreign currencies for local transactions reduces the availability of hard currency needed for essential imports, which affects economic stability,” she noted.
To ensure compliance, BoT has instructed commercial banks to stop processing transactions in foreign currencies for everyday payments, including taxes, school fees, and property rentals. The Director of Financial Markets at BoT, Emmanuel Akaro, stressed that individuals who have been making payments in foreign currencies must now switch to Tanzanian Shillings.
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“The law is clear—domestic transactions must be carried out in Tanzanian Shillings,” he said. “This is about ensuring our currency remains strong and that foreign reserves are used for their intended purpose.”
Recognizing that the transition may require adjustments, BoT has launched an awareness campaign to educate businesses, banks, schools, and the general public on the new regulations. Authorities have also urged citizens to report any violations to BoT or other relevant government agencies to ensure smooth enforcement.
The decision to phase out foreign currency transactions aligns with Tanzania’s broader economic strategy of stabilizing inflation and safeguarding foreign reserves.
