Faith Nyasuguta
Tanzania has officially banned the use of foreign currencies in domestic transactions, stepping up efforts to strengthen its local currency, the Tanzanian shilling. The move, announced by the Bank of Tanzania (BoT), is part of a broader push to reinforce monetary sovereignty and economic stability.
The directive follows the release of the “Regulations on the Use of Foreign Currency, 2025,” published in Government Gazette No. 198 on March 28, 2025. In a statement signed by Governor Emmanuel Tutuba, the BoT made it clear that all pricing, quoting, advertising, and payment for goods and services within Tanzania must now be carried out exclusively in Tanzanian shillings.
Under the new rules, using or demanding payment in foreign currencies such as the U.S. dollar, euro, or British pound for domestic transactions is now considered a legal offence. The only exceptions apply to specific cases outlined in the regulations, such as certain cross-border transactions or government-approved contracts.
Contracts that currently involve foreign currency are subject to time limits and must comply with the new framework. As of March 28, 2025, no new contracts requiring foreign currency payments for local services could be signed or renewed.
Foreign visitors, including tourists, are now required to convert their currencies at licensed banks or Bureau de Change outlets. Alternatively, they may continue using international bank cards or digital platforms for local purchases.
The BoT has called on the public to report any violations of the new rules to the central bank, the Financial Intelligence Unit, the police, or other law enforcement bodies. Violators risk legal penalties as part of the government’s enforcement strategy.
Tanzania’s bold step mirrors similar actions previously taken by other African countries. In 2019, Zimbabwe banned the use of foreign currencies like the U.S. dollar and South African rand in local trade in an effort to revive its Zimbabwean dollar.
These policies reflect a growing trend across the continent: African nations striving to reclaim economic control and reduce dependence on foreign currencies. For Tanzania, this marks a decisive turn toward stabilizing its monetary system and strengthening confidence in the shilling as the country’s sole legal tender.
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