The Bank of Tanzania (BoT) has formally instituted a nationwide ban on the use of foreign currencies for domestic transactions, mandating that all payments and pricing within the country’s borders be conducted exclusively in Tanzanian shillings (TZS). The regulatory directive, issued under new government provisions enacted in 2025, underscores the state’s broader strategy to reinforce monetary sovereignty and mitigate the informal use of foreign currencies in the domestic market.
According to a statement released late on Friday and signed by BoT Governor Emmanuel Tutuba, the central bank clarified that while foreign currencies remain legally accepted for certain specified transactions—such as foreign trade and obligations requiring international settlement—any domestic use of foreign currency for the purchase of goods and services is now considered a regulatory violation.
Under the new framework, foreign nationals, including tourists, are required to exchange foreign denominations at licensed commercial banks or official bureaux de change within Tanzania. While cash payments in foreign currencies are no longer permissible within the country, non-cash digital alternatives such as internationally issued debit and credit cards remain acceptable, thereby safeguarding convenience for foreign visitors and reducing pressure on the local cash economy.
The central bank further urged the public to remain vigilant and to report any entities or individuals attempting to contravene the new monetary regulations. Violations can be reported to the Financial Intelligence Unit, the Tanzanian Police Force, or other law enforcement agencies empowered to undertake regulatory enforcement and financial investigations.
This policy shift aligns with ongoing efforts by the Tanzanian government to stabilise the local currency and assert greater control over monetary policy, particularly in light of increasing dollarisation observed in various segments of the national economy. Dollarisation, a condition where the US dollar or other foreign currencies are used in lieu of local currency, has posed systemic challenges for fiscal management, inflation control, and exchange rate stability in emerging economies, including Tanzania.
The BoT’s latest announcement is consistent with global best practices observed in other jurisdictions seeking to curb informal use of foreign currency within their monetary systems. Similar measures have been adopted across parts of Sub-Saharan Africa, as governments attempt to anchor inflation expectations, reduce exchange rate volatility, and preserve the efficacy of domestic monetary instruments.
For further reading and official reference, the Bank of Tanzania’s official press release is accessible via its official website. Observers and market participants are encouraged to follow BoT updates for any adjustments or clarifications related to the scope of permitted foreign currency transactions under the new regulatory framework.
