Tanzania has outlawed the use of foreign currencies, including the U.S. dollar and British pound, for the purchase and sale of goods and services within the country, the central bank said on Monday.

The Bank of Tanzania (BoT) announced the implementation of new regulations aimed at restricting the domestic use of foreign currencies

Under the new regulations, all pricing and payment for goods and services must be conducted in Tanzanian shillings. The measures apply to all businesses, including tourist hotels, airlines, shopping malls and government institutions previously engaged in transactions using foreign currency.

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 regulations were enacted under Section 26 of the Bank of Tanzania Act, 2006, and are titled the Regulations on the Use of Foreign Currency, 2025.

Exceptions apply for certain transactions, which are still permitted to be conducted in foreign currency. The rules also set limitations on contracts denominated in foreign currencies, including a ban on entering or renewing such agreements. These provisions took effect from March 28.

Foreign nationals, including tourists, are required to convert foreign currency through licensed commercial banks or bureaux de change. Payments using bank cards or digital platforms remain permitted.

Since early 2023, Tanzania has grappled with a persistent shortage of foreign exchange, particularly US dollars. This scarcity has disrupted international trade and driven up the cost of imports, placing strain on businesses and consumers alike.

In response, the government has implemented measures aimed at promoting the use of the local currency, the Tanzanian shilling, and reducing reliance on foreign currencies.