Tanzania has introduced a ban on using foreign currencies like the US dollar for local transactions, effective March 28, 2025. The Bank of Tanzania requires all domestic transactions to be conducted in Tanzanian Shillings, aiming to strengthen the local currency and reduce reliance on foreign exchange.
The new regulation mandates that all goods and services must be priced and paid for in Tanzanian Shillings. Existing contracts in foreign currencies must be converted to Tanzanian Shillings by March 27, 2026. However, tourists can exchange foreign currencies at licensed banks or forex bureaus, and international organizations can conduct transactions in foreign currencies.
The Bank of Tanzania attributes the recent depreciation of the Tanzanian shilling to seasonal changes in foreign exchange flows and its flexible exchange rate policy. Despite this, Tanzania's foreign exchange reserves remain strong, with over $5.6 billion in reserves, enough to cover 4.5 months of imports.
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