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Tanzania has officially banned the use of foreign currencies—including the U.S. dollar and euro—for all domestic transactions, effective immediately. Under new regulations issued by the Bank of Tanzania (BoT), all goods and services must now be priced and paid for exclusively in Tanzanian shillings (TZS) .
The move aims to curb the informal “dollarization” of the economy, particularly in tourist-heavy regions like Zanzibar and the Serengeti, where businesses often quote prices in foreign currencies. BoT Governor Emmanuel Tutuba emphasized that this policy is designed to strengthen the shilling and reinforce monetary sovereignty .
The regulations prohibit quoting or accepting payments in foreign currencies and mandate that existing contracts denominated in foreign currencies be amended within a year to align with the new law . Tourists and foreign visitors can still use credit cards or digital payments, but cash must be exchanged at licensed banks or forex bureaus.
This policy shift comes amid a recent depreciation of the shilling, which lost 3.6% against the dollar over the past year . Authorities believe enforcing the exclusive use of the local currency will help stabilize the economy and reduce reliance on foreign exchange.
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