Tanzania outlaws use of foreign currency in local payments

Tanzania has issued new regulations banning the use of foreign currencies for any form of payment or pricing within the country, marking a major shift aimed at strengthening the national currency.

The Bank of Tanzania (BoT) announced that from now on, only Tanzanian Shillings (TZS) will be allowed in domestic transactions, whether in retail, contracts, or service delivery.

This means that businesses, individuals, and traders are no longer permitted to quote or accept payments in currencies such as the US dollar or Kenyan shilling.

"The Bank of Tanzania wishes to inform the public that, by the provisions of Section 26 of the Bank of Tanzania Act, 2006, the Government has issued the Regulations on the Use of Foreign Currency, 2025," a statement from the Bank reads.

"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," it reads further

The regulations extend beyond pricing and payment and will also impact contracts written in foreign currencies.

All such contracts must now be modified within one year to comply with the law.

Foreigners visiting or working in Tanzania must also follow the new rules. Any foreign currency in their possession must be exchanged at commercial banks or Bureau de Change outlets.

They are allowed to use card payments and digital transactions as alternatives.

Despite the ban, certain exceptions have been listed in the regulations.

These include foreign currency transactions involving international organisations, embassies, contributions to regional bodies, duty-free purchases, and loans from local banks issued in foreign currency.

Kenyan citizens and businesses dealing with Tanzania will need to make key adjustments.

Visitors must convert their money to Tanzanian shillings before buying anything locally.

Kenyan companies operating in Tanzania must also update their pricing models and contracts to reflect the new currency requirements.

This change is expected to have an impact on cross-border trade, especially for those who rely on the Kenyan shilling.

Converting between currencies may result in financial losses due to fluctuating exchange rates.

The Bank has urged foreigners to fully comply with the rules and called on Tanzanians to report anyone found violating the regulations.