Tanzania Bans Use of US Dollars, Other Foreign Currencies for Local Transactions

Story by Elijah Ntongai

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

The new foreign exchange regulations, published in the Government Gazette on March 28, 2025, aim to stop the ongoing depreciation of the Tanzanian shilling

All goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings

Elijah Ntongai, a journalist at TUKO.co.ke, has more than four years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.

The Bank of Tanzania has officially banned the use of foreign currencies, including the US dollar, for local transactions and payments within the country.

This is part of the new regulations that were published in the Government Gazette on March 28, 2025 in a move to arrest the depreciation of the Tanzanian shilling.

What did the Bank of Tanzania say?

In a public notice issued on Thursday, the central bank announced that all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

“Under these Regulations, pricing and payment for all goods and services within the country must be in Tanzanian Shillings. Therefore, it is an offence 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,” the statement read.

The notice, signed by Bank of Tanzania Governor Emmanuel M. Tutuba, clarified that while certain transactions involving foreign currency are still allowed under the new rules, a time limit will apply to contracts already executed in foreign currency.

Moreover, entering into or renewing any agreements requiring foreign currency payments will be prohibited.

What will foreigners in Tanzania do?

According to the notice, foreigners, including tourists, are not exempt from the changes.

They must exchange their foreign currency at commercial banks or licensed Bureau de Change outlets in Tanzania. However, they may continue to use bank cards and other digital payment methods.

''Foreigners, including tourists, are required to exchange foreign currency through commercial banks or the Bureau de Change in Tanzania. They may also continue making payments using bank cards or other digital payment methods,'' the Bank of Tanzania added.

The central bank urged the public to report any violations of the new regulations to the Bank of Tanzania or relevant law enforcement agencies, including the Financial Intelligence Unit and the Police Force.

The shift follows growing concerns about dollarization in local markets and aims to curb the informal use of foreign currencies that has reportedly been affecting monetary policy implementation.

What is the value of Tanzanian shilling?

Earlier, TUKO.co.ke reported that the Tanzanian shilling (TZS) has emerged as one of Africa’s worst-performing currencies in 2025, trading at TZS 2692 per US dollar as of May 4.

This sharp decline prompted the Tanzanian government to introduce stringent foreign exchange regulations on March 11, 2025, requiring all domestic transactions and pricing to be conducted in TZS in an effort to curb further weakening.

Despite these measures, the currency continues to face significant pressure, reflecting broader economic challenges.