Tanzania brings into force rules requiring domestic prices and payments in shillings

Tanzania's regulations on the use of foreign currency came into force on 28 March 2025, requiring goods and services sold within the country to be priced and paid for in Tanzanian shillings. The rules, overseen by the Bank of Tanzania, were published in the Government Gazette as Government Notice No. 198 of 28 March 2025, having been signed by Finance Minister Mwigulu Nchemba on 11 March.

Under the regulations, all prices for goods and services within Tanzania must be quoted in shillings. It is an offence to quote prices in foreign currency, to compel a buyer to pay in foreign currency, or to refuse payment in shillings, and receiving payment in foreign currency for domestic goods or services is prohibited unless an exemption applies.

CONTRACTS AND EXEMPTIONS

Contracts entered into before the regulations took effect that require payment in foreign currency must be amended within one year. New contracts providing for domestic payment in foreign currency may not be executed, and existing ones may not be renewed on those terms.

The regulations list four exempt categories: government contributions to regional and international institutions based in Tanzania; transactions involving embassies and international organisations; foreign currency loans from banks and other financial institutions; and purchases in duty-free shops. Foreign visitors may continue to exchange currency through commercial banks and licensed bureaux de change.

SCOPE

The rules apply to all businesses operating in Tanzania, regardless of ownership or the nationality of their customers. Breaches can be reported to the Bank of Tanzania, the Financial Intelligence Unit or the police.