Categories: Africa

Tanzania Bans Foreign Use of Currency for Local Transactions

Companies in Tanzania, with US Dollar contracts must now convert to shillings as Central Bank of Tanzania implements strict new regulations. The government of Tanzania has given those firms with ongoing contracts involving foreign currency transactions a 1-year grace period to amend their agreements.

The directive, which took effect on March 28, 2025, through Government Notice (GN) 198 of 2025, implements changes introduced by the Finance Act of 2024 that amended the Bank of Tanzania Act to prohibit the use of foreign currency for domestic transactions.

Bank of Tanzania Governor Emmanuel Tutuba confirmed these new rules, which apply to a broad spectrum of businesses including those in real estate, tourism, hospitality, financial institutions, importers, exporters, and non-governmental organizations.

Companies must revise their pricing structures, remove foreign currency quotations from marketing materials, establish procedures to manage exchange rate risks, and update their accounting systems to exclusively handle transactions in Tanzanian shillings, with any foreign currency pricing for local transactions
now considered an offense.

Branislav Moses Opudo

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Branislav Moses Opudo

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