Dar es Salaam, June 20, 2023
The Bank of Tanzania has issued a public notice to remind residents of the United Republic of Tanzania about prohibiting using foreign currency for domestic payments. The Central Bank’s declaration, which was first made in August 2007 and reiterated in December 2017, aims to ensure the stability and integrity of the national currency, the Tanzanian shilling.
In light of recent instances of non-compliance, Professor Florens Luoga, the Governor of the Bank of Tanzania, felt it necessary to reiterate the instructions regarding the use of foreign currency. The public notice emphasizes several key points that should be observed:
Firstly, all prices within the country, including land and property rental fees, education and healthcare costs, transportation charges, and electronic goods, among others, should be quoted in Tanzanian shillings.
However, prices specifically targeting tourists or non-resident customers may still be quoted in foreign currency, and payments for these services can be made using foreign currency. In such cases, individuals using foreign currency are required to provide proper identification, such as passports for individuals or registration documents for companies.
The exchange rates used for these foreign currency transactions should be transparent and not exceed market rates. Only authorized banks and foreign exchange bureaus are permitted to determine the exchange rates based on market competition.
It is crucial to note that Tanzanian residents must make payments for goods and services exclusively using Tanzanian shillings, and they should not be compelled to use foreign currency within the country.
Governor Florens Luoga emphasized the importance of adhering to these regulations. He stated, “We urge the public to comply with the directives outlined in the public notice. By utilizing the Tanzanian shilling for domestic transactions, we can ensure financial stability and promote the growth of our economy.”
The Bank of Tanzania’s public notice serves as a reminder to individuals, businesses, and institutions operating within the United Republic of Tanzania to honor the regulations regarding the use of foreign currency. Governor Florens Luoga and the central bank remain committed to maintaining the integrity of the country’s currency and safeguarding the financial well-being of its citizens.