The Bank of Tanzania has officially banned the use of foreign currencies, including the US dollar, for all local transactions and payments within the country, according to a statement released on May 3, 2025.
The new regulations, published in the Government Gazette on March 28, 2025, mandate that all goods and services in Tanzania must be priced and paid for in Tanzanian Shillings (TZS).
The central bank stated that the measure aims to promote the use of the Tanzanian Shilling and address the ongoing depreciation of the currency, which has fallen nearly 9% against the US dollar by early April 2025.
Under these new rules, quoting or paying for goods and services in foreign currencies is prohibited, and existing contracts denominated in foreign currencies must be converted to TZS within 12 months, by March 27, 2026, unless an extension is granted by the Minister of Finance.
Foreigners, including tourists, are required to exchange their foreign currency at commercial banks or Bureau de Change. The Bank of Tanzania has urged the public to report any violations of the regulations to the central bank, the Financial Intelligence Unit, or the police for appropriate action.
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The policy follows earlier efforts to curb dollarization, including a public notice from the Bank of Tanzania on June 20, 2023, and amendments to the Bank of Tanzania Act in 2024, which made it an offence to transact in any currency other than the Tanzanian Shilling for domestic payments.
The Tanzanian government has been working to stabilize its currency amid broader economic challenges, with the Tanzanian Shilling ending 2024 with a 2% appreciation after a late rally.
