The Bank of Tanzania (BOT) is collaborating with the Ministry of Finance to implement new regulations banning the use of foreign currencies for domestic transactions. This move follows amendments to the Tanzania Bank Act, specifically Section 26(2), which prohibits such practices.
Viewwa Waane, manager of international economics and real sectors at the BOT, announced that the regulations will be released publicly upon completion. Waane explained that the use of foreign currency in domestic transactions undermines the effectiveness of Tanzania’s monetary policy, fuels inflationary pressures, and restricts the availability of foreign currency for essential imports.
The BOT has instructed commercial banks to promote the use of Tanzanian Shillings in all transactions, including payments for taxes, fees, goods, and services. “The goal,” Waane emphasized, “is to strengthen the value of the Tanzanian Shilling and ensure that foreign currency is reserved solely for crucial imports.”
Emmanuel Akaro, director of the BOT’s financial markets, highlighted that some individuals currently use foreign currencies for domestic payments, including rent and school fees, which is already illegal. The BOT is actively raising awareness among the public, businesses, banks, and educational institutions about the existing law and the upcoming regulations. Akaro urged the public to report any violations to the relevant authorities.
- Advertisement -
“These changes,” Akaro concluded, “are part of a broader initiative to stabilize Tanzania’s financial system and uphold the integrity of its monetary policy.”
