The Central Bank of Tanzania [BoT] has issued a clarification on the Foreign Exchange Regulations 2025, stating that payments for goods and services between residents and foreigners, including tourists, can be made using foreign currencies.
Speaking at a discussion held at the Karibu-Kilifair Exhibition in Arusha on June 08, 2025, the Director of Financial Markets at the Central Bank of Tanzania, Mr. Emmanuel Akaro, explained that the move aims to facilitate a business-friendly environment for foreigners and ease of transactions in the tourism sector.
“Tourism agents who are residents are allowed to use foreign currencies to pay for various services provided to tourists from abroad,” he said.
He stressed that all payments between residents must be made in Tanzanian Shillings and it is an offence for any service provider to refuse payments made using Tanzanian Shillings.
Mr. Akaro said these Regulations have been enacted in accordance with Section 26 of the Central Bank of Tanzania Act of 2006, and have officially come into force from 28 March 2025.
“Since the commencement of these regulations, there have been positive results including increased foreign exchange liquidity.
For example, US Dollar transactions in the country’s retail foreign exchange market have increased from an average of $40 million to $69 million per day”, he said.
He said that due to the increase in foreign exchange liquidity, the value of the Tanzanian Shilling against the US Dollar has strengthened significantly and is expected to continue to strengthen further.
“This is due to the start of the foreign exchange earnings season, especially from sectors such as tourism, agriculture and exports of goods, which usually bring in a lot of foreign exchange during this period,” he said.
The Bank of Tanzania continues to educate the public about the implementation of these regulations, to ensure that they are observed for the benefit of the national economy and the prosperity of commercial sectors, especially tourism.
