In a significant move to stabilize its national currency, the Tanzanian government has introduced stringent regulations prohibiting the use of foreign currencies, including the US dollar, for local transactions. Effective from March 28, 2025, this policy mandates that all domestic payments be conducted exclusively in Tanzanian Shillings (TZS).
The Bank of Tanzania (BoT) announced these regulations in the Government Gazette No. 198, aiming to curb the ongoing depreciation of the Tanzanian Shilling and reduce the economy’s reliance on foreign currencies. Under the new rules, it is an offense to quote, advertise, or accept payments in foreign currency for goods and services within the country. Violations are subject to legal penalties as stipulated by the BoT.
However, the regulations do allow for specific exceptions. Transactions involving foreign currency are permitted in certain contexts, such as payments to international organizations, transactions at duty-free shops and embassies, foreign currency-denominated loans, and payments by non-residents for services like tourism. Foreign visitors are required to exchange their foreign currency at authorized financial institutions or use digital payment methods.
This policy shift comes in response to the Tanzanian Shilling’s significant depreciation against the US dollar. As of early May 2025, the exchange rate reached approximately TZS 2,696.58 per USD, reflecting a notable decline in the currency’s value over the past year. The government aims to strengthen the Shilling by promoting its use in all domestic economic activities.
The BoT urges the public to report any violations of these regulations to the appropriate authorities, including the Financial Intelligence Unit and the Police Force. This initiative is part of broader efforts to enhance monetary policy effectiveness and ensure economic stability in Tanzania.
For more detailed information, the official public notice from the Bank of Tanzania can be accessed
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