Tanzania Enforces Exclusive Use of Shillings for Domestic Transactions to Strengthen Monetary Sovereignty

(3 Minutes Read)

The Bank of Tanzania (BoT) has officially prohibited the use of foreign currencies in local transactions, mandating that all domestic payments and pricing be conducted solely in Tanzanian shillings (TZS). This new directive, introduced under government regulations enacted in 2025, aims to reinforce monetary sovereignty and curtail the informal circulation of foreign currencies within the national economy.

In a statement released on Friday and signed by BoT Governor Emmanuel Tutuba, the central bank emphasised that while foreign currencies will remain valid for specific transactions, such as international trade and cross-border settlements, their use in local purchases of goods and services is now deemed a regulatory offence.

Foreign nationals, including tourists, are now required to convert foreign currency into Tanzanian shillings at authorised banks or bureaux de change. Although cash payments in foreign currency are no longer allowed, digital transactions using international credit and debit cards will still be accepted, preserving convenience for visitors while easing demand on the local cash economy.

The BoT urged the public to report any attempts to violate the new rules, directing such reports to the Financial Intelligence Unit, the Tanzanian Police Force, or other relevant authorities tasked with financial oversight and enforcement.

This policy shift is part of the government’s broader strategy to stabilise the national currency, limit dollarisation, and enhance control over monetary policy. The growing use of foreign currencies, particularly the US dollar, has complicated efforts to manage inflation, control exchange rates, and implement effective fiscal strategies.

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Tanzania’s approach mirrors international best practices seen across Sub-Saharan Africa, where countries are taking similar steps to curb informal foreign currency usage, protect local currency integrity, and promote macroeconomic stability.