By Alfred Zacharia
The Bank of Tanzania (BoT) has held high-level discussions with key stakeholders to deliberate on the newly gazetted Foreign Currency Usage Regulations, 2025, in a move aimed at strengthening the use of the Tanzanian shilling in domestic transactions and ensuring financial market stability.
The meeting, which took place on May 21, 2025 at the BoT headquarters in Dar es Salaam, brought together representatives from the Tanzania International Schools Association (TISA), the Tanzania Confederation of Tourism (TCT), the Confederation of Tanzania Industries (CTI), and the auditing firm ARK Associates.
The session focused on the detailed provisions of the new regulations, published in the Government Gazette No. 198 on March 28, 2025. Under the new rules, all goods and services provided within the borders of the United Republic of Tanzania are to be priced and paid for exclusively in Tanzanian shillings.
The BoT emphasized that quoting, advertising, or setting prices in foreign currencies is now a legal offense. Additionally, compelling or facilitating payments in foreign currencies, or refusing payments made in Tanzanian shillings, also constitutes a violation of the law.
These regulations are not about restricting economic activity but about reinforcing monetary sovereignty.
The Tanzanian shilling is the only legal tender for domestic transactions, and this must be upheld to safeguard the integrity and stability of our economy.
The regulations clarify specific transactions that may still be conducted in foreign currency, primarily in cases involving international trade, foreign investment, or specific sectors where such provisions are justifiable.
However, a key clause now prohibits the signing or renewal of any new contracts requiring foreign currency payments effective from March 28, 2025.
Foreign visitors, including tourists, will still be allowed to pay using electronic cards or other recognized digital platforms.
However, they must exchange foreign currencies through licensed commercial banks or authorized bureaux de change before making any cash payments.
Stakeholders expressed concerns about the practical implications of the new rules, especially in sectors that traditionally operate in foreign currencies. These include international schools, hotels, and tour operators whose clients are often non-residents.
TISA representatives raised questions about tuition fees for expatriate students, while TCT voiced concerns over tourist payment systems and the potential impact on the ease of doing business. Meanwhile, CTI called for clarity on how the regulations will affect export contracts and transactions involving cross-border suppliers.
In response, BoT officials assured stakeholders that implementation will be guided by a collaborative approach, and sector-specific concerns will be reviewed where necessary to avoid economic disruptions.
This consultative approach reflects BoT’s broader commitment to engaging the private sector in regulatory reforms. The central bank maintains that enhancing demand for the local currency will increase its strength, reduce dollarization, and foster greater economic resilience.
The meeting marks an important step in BoT’s nationwide sensitization campaign to enforce the 2025 regulations. Additional forums with other sectors, including financial institutions, real estate, and logistics, are expected in the coming weeks.
As the country continues its economic reforms, BoT’s enforcement of domestic currency usage is expected to play a critical role in achieving monetary stability, enhancing transparency in pricing, and supporting long-term macroeconomic goals.