It is now illegal to transact in American Dollars, British Pounds or any other foreign currencies when buying or selling goods and services anywhere in Tanzania.
The Central Bank of Tanzania has just rolled out new sets of regulations pertaining the use, or misuse of foreign currencies in the East African country.
According to an official statement issued from the office of the Bank of Tanzania (BoT) Governor, Emmanuel Tutuba, the new regulations now going into effect were previously published in the Government Gazette No. 198, dated on the 28th of March 2025.
The BoT Governor informed the public that, in accordance with the provisions of Section 26 of the Bank of Tanzania Act, 2006, the Government has issued the Regulations on the Use of Foreign Currency, 2025.
Tourist hotels, airlines, large shopping malls and travel companies in Tanzania have always been tagging their prices in US Dollars and Euros.
Even government institutions directly involved in tourism or hospitality industry have always dollarized their transactions.
But under these latest Regulations, pricing and payment for all goods and services within the country must now be translated or converted and fixed in the local Tanzanian Shillings.
Foreign Currencies exchange rates in Tanzania
“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 Central Bank statement maintained.
The Regulations also specify transactions that are permitted to be conducted in foreign currency.
Furthermore, the Regulations have set a time limit on contracts executed in foreign currency and prohibit entering into new or renewing contracts that require payments in foreign currency. This also went into effect from March 28, 2025.
Foreigners, including tourists, are required to exchange foreign currency through commercial banks or the Bureau de Change (Forex) outlets in Tanzania.
They also have the option of making payments using bank cards or other digital payment methods.
The Bank of Tanzania, through the release, told the public to also report any violations of these Regulations to the Bank through the BoT email correspondence at fx.regulations@bot.go.tz, the Financial Intelligence Unit (FIU), the Tanzania Police Force, or any other relevant law enforcement authority for appropriate action.