Tanzania bans use of foreign currency for local payments
Tanzania has introduced a new directive that stops people and businesses from using foreign money like US dollars or Kenyan shillings for transactions within the country.
The Bank of Tanzania says all goods and services must now be priced and paid for using Tanzanian shillings.
The directive was announced under Section 26 of the Bank of Tanzania Act, 2006.
“It is an offence to quote, advertise, or indicate prices in foreign currency, to compel, facilitate, or accept payment in foreign currency, or to refuse payment made in Tanzanian Shillings,” the central bank said in a statement.
This means companies and traders are no longer allowed to list prices or sign new contracts in foreign currency.
Any old contracts made in dollars or other currencies must be updated within one year to follow the new rule.
Embassies, international groups, and regional organisations are, however, still allowed to use foreign currencies for specific transactions.
Tourists and foreigners visiting the country can also continue exchanging foreign money at banks or licensed exchange offices.
Foreigners can still pay using cards and other digital methods, but local businesses must make sure prices are listed in Tanzanian shillings and payments are received in the local currency.
The change is likely to affect businesses from neighbouring Kenya that trade with Tanzania. Kenyan companies will now have to convert their money to Tanzanian shillings before making payments.
The central bank says this move will help strengthen the use of the Tanzanian shilling and support the country’s economy.
It is also encouraging the public to report anyone who breaks the new law.
