In a significant move aimed at strengthening its national currency, the Bank of Tanzania has officially banned the use of foreign currencies—including the US dollar—for all domestic transactions. The new regulations mean that all payments for goods and services within Tanzania must now be conducted exclusively in Tanzanian Shillings (TZS).
According to a directive issued by the central bank, quoting prices or accepting payments in foreign currencies is no longer allowed for any local transactions. This policy applies across all sectors, including tourism, hospitality, real estate, and business services, where foreign currencies were previously accepted in some cases.
“This decision is part of broader efforts to reinforce the use of the Tanzanian Shilling in the local economy and reduce the dependency on foreign currencies,” said a spokesperson for the Bank of Tanzania. “We want to enhance the stability of our monetary system and ensure more control over financial flows within the country.”
The directive also affects existing contracts that are currently denominated in foreign currencies. Businesses and individuals with such agreements are required to convert them into Tanzanian Shillings within the next 12 months, with a deadline set for March 27, 2026. However, the government has indicated that the Minister of Finance may grant extensions in special cases, subject to approval.
The new policy is expected to have far-reaching implications for sectors that rely heavily on foreign clients or investment. Industry leaders and stakeholders have been urged to comply promptly to avoid penalties, as the Bank of Tanzania works to enforce the changes.