The Bank of Tanzania has issued a clarification on the Foreign Currency Use Regulations of 2025, explaining that payments for goods and services between residents and non-residents, including tourists, may be made using foreign currency.

Speaking during a panel discussion held at the Karibu-Kilifair exhibition in Arusha on June 8, 2025, the Director of Financial Markets at the Bank of Tanzania, Mr. Emmanuel Akaro, explained that the move aims to create a business-friendly environment for visitors and ease transactions in the tourism sector.

“Tourism agents who are residents are allowed to use foreign currency to pay for various services provided to foreign tourists,” he said.

He emphasized that all payments between residents must be conducted in Tanzanian Shillings, and it is an offense for any service provider to refuse payments made in Tanzanian Shillings.

Mr. Akaro added that these regulations were established under Section 26 of the Bank of Tanzania Act of 2006 and officially came into effect on March 28, 2025.

“Since the implementation of these regulations, there have been positive outcomes, including an increase in the liquidity of foreign currency. For instance, retail foreign exchange transactions in US Dollars have increased from an average of 40 million to 69 million dollars per day,” he stated.

He further noted that, due to the increased liquidity of foreign currency, the value of the Tanzanian Shilling against the US Dollar has significantly strengthened, and the expectation is that it will continue to improve.

“This is due to the beginning of the foreign exchange earnings season, particularly from sectors such as tourism, agriculture, and exports, which typically generate substantial foreign currency inflows during this period,” he said.

The Bank of Tanzania continues to educate the public on the implementation of these regulations to ensure compliance for the benefit of the national economy and the prosperity of business sectors, especially tourism.