Fact Check: Has Tanzania Banned US Dollars?
Claim: Tanzania has banned the use of US dollars for transactions within the country.
Verdict: Partially True. Tanzania has not imposed a complete ban on US dollars but has introduced strict regulations requiring the Tanzanian Shilling (TZS) as the primary currency for most domestic transactions, with limited exceptions for foreign currency use.
Background
Reports circulating in May 2025, including posts on X and news outlets, claim that Tanzania has “banned” US dollars and other foreign currencies for local transactions. This follows the Bank of Tanzania (BoT)’s efforts to stabilize the Tanzanian Shilling amid a foreign currency shortage in 2023–2024.
Tanzania bans use of US dollars, other foreign currencies for local transactions
The Bank of Tanzania has officially banned the use of foreign currencies, including the US dollar, for all local transactions and payments within the country.
The new foreign exchange regulations,… pic.twitter.com/rPEIpRbHrv
— African Hub (@AfricanHub_) May 4, 2025
Evidence
Primary Source: Bank of Tanzania Regulations
- The Foreign Currency Usage Regulations, 2025 (Government Notice No. 198), effective March 28, 2025, mandate that all prices for goods and services in Tanzania be quoted and paid in Tanzanian Shillings, except in specific cases. This was published in the Tanzania Government Gazette and confirmed by a BoT statement on May 3, 2025.
- The Finance Act 2024 amended the Bank of Tanzania Act, adding section 26(2), which makes it an offense to transact domestically in any currency other than TZS.
Exceptions to the Rule
Foreign currencies, including US dollars, are permitted for:
- Payments to international organizations by the government.
- Transactions at duty-free shops and embassies.
- Foreign currency-denominated loans and non-resident payments to Tanzanian businesses (e.g., tourism services).
These exceptions indicate that US dollars remain usable in specific contexts, particularly in tourism-heavy areas like hotels and national parks.
Analysis
The claim that Tanzania has “banned” US dollars is an oversimplification. The Foreign Currency Usage Regulations, 2025, restrict the use of foreign currencies for domestic transactions to promote the Tanzanian Shilling as the sole legal tender. However, US dollars remain acceptable for specific transactions, particularly in tourism and international contexts. The policy stems from a 2023–2024 dollar shortage, aiming to stabilize the economy and curb unregulated currency exchange.
Enforcement may vary, especially in tourist hubs where US dollars are still widely accepted informally. Travelers are advised to carry TZS for local payments and USD for tourism-related expenses, using official exchange channels to comply with regulations.
Conclusion
Tanzania has not banned US dollars outright but has restricted their use in domestic transactions under the Foreign Currency Usage Regulations, 2025, effective March 28, 2025. Exceptions allow US dollars in specific cases, such as tourism and international payments. The claim is partially true but requires context to avoid misinterpretation.
