In a bold move to stabilize its weakening national currency, the Tanzanian government has officially banned the use of foreign currencies—most notably the US dollar—in all domestic transactions. The new foreign exchange regulations were made public in the Government Gazette on March 28, 2025, and are now being enforced across the country.
According to a notice issued by the Bank of Tanzania, all goods and services must now be priced and paid for exclusively in Tanzanian Shillings (TZS). The central bank emphasized that quoting or receiving payments in foreign currencies is now illegal, and violations may lead to legal consequences.
“From now on, it is unlawful to advertise or accept payments in any currency other than the Tanzanian Shilling,” stated Bank of Tanzania Governor Emmanuel M. Tutuba in the official release.
While the directive allows some previously signed contracts in foreign currencies to continue temporarily, no new agreements involving foreign payments will be permitted.
Foreigners visiting Tanzania, including tourists, are also subject to the new regulations. They must convert their money into Tanzanian Shillings through official banks or licensed money changers. However, the use of bank cards and digital payment systems remains permitted.
The decision comes amid concerns over the increasing use of foreign currencies in the country, which experts say has been undermining monetary policy and accelerating the depreciation of the shilling.
As of May 4, 2025, the Tanzanian Shilling was trading at TZS 2,692 per US dollar, placing it among the poorest performing African currencies this year. Despite earlier efforts to strengthen the currency through regulatory reforms, the continued pressure has prompted the government to take a firmer stance.
Authorities have urged the public to report violations to the central bank or law enforcement agencies to ensure full compliance with the new rules.