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Bank of Tanzania (BoT), Tanzania’s central bank ordered its business entities to stop transacting in US dollars and insisted all prices be given in local Tanzanian Shillings. Bank’s decision is designed to further strengthen control of foreign currency flows which are seriously dominating real estate, health, transport, logistics, and education transactions.
Bank of Tanzania (BoT), Tanzania’s central bank ordered its business entities to stop transacting in US dollars and insisted all prices be given in local Tanzanian Shillings. Bank’s decision is designed to further strengthen control of foreign currency flows which are seriously dominating real estate, health, transport, logistics, and education transactions.
The Governor of BoT, Emmanuel Tutuba said on Tuesday that the bank has recently observed the violation of the directives that were issued in August 2007 and December 2017 prohibiting domestic payments for goods and services using foreign currencies for Tanzania nationals. However, the Central Bank added that tourists or non-resident customers may pay for various goods and services to be transacted using foreign currency.
This includes services such as accommodation, travel, airport and visa, transit trade, and cargo handling. Tourists and non-residents who pay in foreign currencies must provide their identification documents such as passports and certificates of incorporation for companies for proper capturing and classification of statistics, the statement read.
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The Bank of Tanzania further stated that the exchange rate which will be used for making payment therein above should be displayed and should not exceed the prevailing market exchange rate. Equally, the Central Bank emphasized that all Tanzania citizens should use only Tanzania Shillings and should not be forced or obliged to make payments to another Tanzania resident using foreign currency. Section 26 of the BoT Act 2006 stipulates that the Tanzania shilling is the only legal tender in the country. Therefore, any act of refusing payment in Tanzania shilling amounts to a violation of the BoT law,” part of the statement read.
