African Country Bans Use of Dollar, Euro, Pound, Other Foreign Currencies for Local Transactions

• The Bank of Tanzania has instructed citizens to stop the use of foreign currencies, including the US dollar, for all local transactions and payments
• The new foreign exchange regulations were published in the Government Gazette on March 28, 2025
• The ban by the government aims to stop the ongoing depreciation of the Tanzanian shilling against the dollar

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Bank of Tanzania has officially banned the use of foreign currencies, including the US dollar, for local transactions and payments within the country.

With the ban, all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

What did the Bank of Tanzania say?

In a public notice issued on Thursday, May 1, the central bank announced that all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

The statement read:

“Under these Regulations, pricing and payment for all goods and services within the country must be in Tanzanian Shillings. Therefore, 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 notice, signed by Bank of Tanzania Governor Emmanuel M. Tutuba, clarified that while certain transactions involving foreign currency are still allowed under the new rules, a time limit will apply to contracts already executed in foreign currency.

Moreover, entering into or renewing any agreements requiring foreign currency payments will be prohibited.

What will foreigners in Tanzania do?

According to the notice, foreigners, including tourists, are not exempt from the changes.

It said they must exchange their foreign currency at commercial banks or licensed Bureau de Change outlets in Tanzania.

However, they may continue to use bank cards and other digital payment methods.

The Bank of Tanzania added.

''Foreigners, including tourists, are required to exchange foreign currency through commercial banks or the Bureau de Change in Tanzania. They may also continue making payments using bank cards or other digital payment methods."

The central bank urged the public to report any violations of the new regulations to the Bank of Tanzania or relevant law enforcement agencies, including the Financial Intelligence Unit and the Police Force. MSN reports.

The shift follows growing concerns about dollarisation in local markets and aims to curb the informal use of foreign currencies that has reportedly been affecting monetary policy implementation.

Naira bounces back against US dollar

Earlier, Legit.ng reported that the Nigerian currency, the naira, rebounded slightly against the dollar after experiencing the worst start in May 2025.

The local currency faced renewed volatility as crude oil prices plunged amid President Donald Trump’s sweeping global tariffs.

Experts have predicted the worst month for the naira as OPEC+ members move to increase output.

The apex bank published its finances to boost investor confidence and enhance transparency in its affairs and foreign exchange management.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng