Tanzania Bans Use of US Dollars and Foreign Currencies for Local Transactions

The Bank of Tanzania has introduced new regulations that prohibit the use of foreign currencies, including the US dollar, for all domestic transactions and payments.

Effective immediately, all goods and services in Tanzania must be priced and paid for strictly in Tanzanian Shillings (TZS). The new policy also bans the quoting of prices or making payments in foreign currencies, a measure aimed at addressing the persistent depreciation of the Tanzanian shilling.

These regulations are part of Tanzania’s broader strategy to regain control over its economy and protect the value of the local currency. To further support this initiative, existing contracts that are denominated in foreign currencies must be converted to TZS by March 27, 2026, unless an extension is granted by the Minister of Finance.