Tanzania is preparing to enforce new regulations that will require all local transactions to be conducted exclusively in Tanzanian Shillings. The policy, set to take effect on July 1, aims to strengthen the national currency and protect the country’s monetary stability.
The Bank of Tanzania, in collaboration with the Ministry of Finance, is finalizing amendments that will prohibit the use of foreign currencies for payments, including taxes, goods, and services. The central bank has already instructed commercial banks to cease transactions in foreign currencies within the country.
Villela Waane, a senior official at the central bank, emphasized that using foreign currencies domestically reduces reserves needed for essential imports and undermines monetary policy. Similarly, Emmanuel Akaro, Director of Financial Markets, stated that accepting foreign currency for local transactions is now considered illegal.
Authorities believe this move will help stabilize Tanzania’s financial system and curb inflationary pressures by ensuring foreign currency reserves are used strategically. The final regulations are expected to be made public once the details are fully refined.