Legal Insight | 20th May 2026
ENHANCING COMPLIANCE ON FOREIGN CURRENCY BAN IN TANZANIA.
- All goods and services within Tanzania must be priced and transacted in Tanzania Shillings (TZS) currency.
- Invoicing and demanding payment in foreign currency is prohibited.
- Specified transactions are allowed to be transacted in foreign currency.
- Existing contracts executed in foreign currency must be modified to TZS currency.
The Government of Tanzania, vide the Finance Act, 2024, amended the Bank of Tanzania Act, Cap. 197 by strictly prohibiting the use of foreign currency for domestic transactions in Tanzania. Further, the Minister of Finance, through Government Notice No. 198, published the Foreign Currency Regulations, 2025 (the Regulations), with a view to reinforcing the use of the Tanzania Shilling (TZS).
Key Points under the Regulations
- All prices of goods and services must be quoted and paid in Tanzania Shillings (TZS). This requirement applies to all sectors and industries.
- Invoicing, publishing or demanding payment in foreign currency is strictly prohibited.
- Accepting payment in foreign currency or refusing payment made in Tanzanian Shillings constitutes an offence.
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Specified transactions (as per below) are allowed to be transacted in foreign currency:
- Government Contributions to Regional Bodies;
- transactions involving embassies and International Organisations;
- foreign currency loans from local financial institutions; and
- purchases from duty-free shops.
- All contracts of goods and services must quote Tanzania Shillings (TZS) as the currency of payment.
- Existing contracts in goods and services executed in foreign currency must be modified to Tanzania Shillings (TZS) currency.
Impact on business entities.
- Mandatory requirement of using Tanzania Shillings (TZS) currency in business transactions.
- The necessity of reviewing and amending existing contracts that involve payment in foreign currency.
- The need to update existing accounting and billing systems in order to facilitate all transactions, billings, and payments to be made in Tanzanian Shillings (TZS) currency.
- Ensuring all marketing and sales materials are quoted and advertised in TZS.
- To mitigate financial risks, businesses should proactively undertake financial audits to identify transactions and contracts that are not in compliance with the use of Tanzania Shillings (TZS) currency.
The respective Regulations aim to reinforce the Tanzanian Shilling (TZS) by strictly prohibiting domestic transactions in foreign currency, except for the allowed transactions.
Eternal Attorneys call upon the businesses to review and amend existing contracts quoted in foreign currency contracts, reassess pricing and payment structures that were previously quoted in foreign currency, and seek regulatory guidance from legal, tax, and finance experts with a view to enhancing regulatory compliance. Eternal Attorneys assist businesses with regulatory compliance. Please reach out to our
contacts below should you have any queries.
To read the Regulations, click here.
Disclaimer
This publication is intended to give you a general overview and does not constitute professional legal advice. Eternal Attorneys, its associates, employees, or agents shall not be responsible for any loss in the event this email is relied upon without seeking professional advice first.
About Eternal - Attorneys
Eternal – Attorneys at Law is a specialized law firm based in Dar es Salaam, Tanzania, dedicated to providing legal and consultancy services to clients, locally and overseas. We specialize in Tax, Corporate and Commercial, Compliance and Advisory, Banking and Finance, Litigation, Mining, Oil & Gas, Real Estate, Intellectual Property, Employment, Immigration, Family, Competition, Succession Law, and Estate Planning.
