Tanzania Implements Strict Ban on Foreign Currency Transactions Nationwide
Tanzania is set to enforce a comprehensive ban on using foreign currencies for domestic transactions, marking a significant shift in the country’s monetary policy. Effective July 1, 2024, the new regulations aim to strengthen the Tanzanian Shilling and protect the national economic framework.
The Bank of Tanzania (BoT) will prohibit all domestic transactions in foreign currencies, including payments for taxes, fees, goods, and services. This decisive move is designed to address critical economic challenges and stabilize the national financial system.
Key objectives of the new regulation include:
– Protecting monetary policy effectiveness
– Reducing inflationary pressures
– Preserving foreign currency reserves for essential imports
– Promoting the use of the national currency
Commercial banks have been instructed to immediately cease facilitating any transactions involving foreign currencies. The initiative targets widespread practices of using international currencies for property rentals, school fees, and other local transactions.
BoT is actively launching public awareness campaigns to educate businesses, banks, and citizens about the new legal requirements. Authorities will actively monitor compliance and encourage reporting of any violations.
“These changes are part of a broader effort to stabilize Tanzania’s financial system and maintain the integrity of our monetary policy,” officials stated. The comprehensive approach signals Tanzania’s commitment to strengthening its economic sovereignty and monetary independence.
