In a sweeping move aimed at strengthening its national currency, the Tanzanian government has banned the use of foreign currencies—including the US dollar and Kenyan shilling—for domestic transactions. The directive, announced by the Bank of Tanzania (BoT), requires that all goods and services within the country be priced and paid for exclusively in Tanzanian Shillings (TZS).
“The Bank of Tanzania wishes to inform the public that, by 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,” read the central bank’s statement. The regulations took immediate effect and are part of the government’s broader effort to enforce monetary sovereignty.
Under the new rules, it’s now a punishable offense for anyone—individuals, businesses, or institutions—to quote, advertise, or accept payment in any foreign currency within Tanzania. The directive also restricts the use of foreign currency in contracts. Any agreements previously made in currencies like the US dollar must be revised and reissued in Tanzanian Shillings within a one-year window.
Tourists and foreign visitors are still allowed to use bank cards and digital platforms for payments, but cash transactions must now be processed in TZS. They are expected to exchange their currency at commercial banks or licensed Bureau de Change outlets. The BoT emphasized that only a narrow set of exceptions will be permitted, such as foreign currency transactions by embassies, international organizations, and for purchases at duty-free shops. Foreign-denominated loans issued by local banks also remain lawful.
The move is likely to create ripples beyond Tanzania’s borders—especially in neighboring Kenya. Kenyan businesses operating in Tanzania will now be required to convert their earnings or funds into Tanzanian Shillings before conducting any deals. For many, this means recalibrating existing contracts, which may expose them to risks from currency exchange rate fluctuations.
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Travelers from Kenya and other neighboring nations will also need to make adjustments, as direct purchases in Kenyan shillings or dollars will no longer be accepted in hotels, restaurants, or retail outlets. The requirement to exchange currency beforehand may add logistical friction to what was previously a more seamless cross-border experience.
While some business owners have expressed concern about the practical challenges of implementation—especially in regions heavily reliant on tourism—the central bank insists that the new measures are necessary to stabilize the local economy and reduce the country’s reliance on foreign currency reserves.
“The Tanzanian Shilling must be the backbone of our economy,” a BoT spokesperson noted. “This policy ensures transparency, control over inflation, and alignment with national monetary goals.”
The public has been encouraged to report any violations of the new regulations to the Bank of Tanzania, as the country moves forward with enforcing the policy. The shift marks a significant turning point for local commerce, one that reasserts the role of the shilling in everyday economic life.
