The Bank of Tanzania has announced a sweeping ban on the use of foreign currencies, including the US dollar, in all local transactions and payments across the country.
The landmark directive, published in the Government Gazette on March 28, 2025, introduces new foreign exchange regulations mandating that all goods and services within Tanzania be priced and settled exclusively in Tanzanian Shillings (TZS). This move is part of the government’s strategy to stabilize the national currency and curb the depreciation pressure that has troubled the economy in recent months.
“The use of any foreign currency for domestic transactions is now prohibited,” the central bank stated. “All individuals, companies, and institutions are required to conduct their business in Tanzanian Shillings, in accordance with the country’s monetary laws.”
The decision marks a significant shift in policy for sectors such as tourism, real estate, education, and hospitality, where the US dollar and other foreign currencies have often been preferred for pricing high-value services and goods.
Analysts suggest that the measure is aimed at strengthening the Tanzanian shilling and reinforcing monetary sovereignty. However, critics have expressed concerns about the potential short-term disruptions to foreign investment and businesses catering primarily to international clients.
The Bank of Tanzania has assured the public and business community that it will monitor the implementation closely and provide guidance to ensure a smooth transition. Entities found violating the new regulation may face penalties in line with the provisions of the Foreign Exchange Act.
This policy aligns Tanzania with a broader regional trend, as several African nations seek to reduce reliance on foreign currencies to protect their economies and assert financial independence.
