Tanzania has officially banned the use of foreign currencies, including the US dollar, for local transactions and payments within the country. The Bank of Tanzania (BoT) announced the measure on May 2, stating that from now on, all domestic transactions must be carried out in Tanzanian shillings.
“Under these Regulations, pricing and payment for all goods and services within the country must be in Tanzanian Shillings,” the BoT stated. “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 ban aims to stop the ongoing depreciation of the Tanzanian shilling against the dollar and curb the informal use of foreign currencies that has reportedly been affecting monetary policy implementation. The move comes as the shilling weakens in 2025 after being one of the world’s strongest currencies in late 2024, losing 3.6% against the dollar between April 2024 and April 2025.
The BoT has instructed citizens and businesses to adhere to the new regulations, while foreigners, including tourists, are required to 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.
“The shift follows growing concerns about dollarisation in local markets,” the BoT noted. Existing contracts in foreign currencies will be allowed only within a defined timeframe, and entering into or renewing any agreements requiring foreign currency payments will be prohibited.
Tanzania’s foreign exchange reserves remain strong, with over $5.6 billion in reserves, enough to cover 4.5 months of imports. The BoT expects the level to remain stable through the second quarter and plans to continue buying gold and foreign exchange on the open market to strengthen reserves in the longer term.