Tanzania issues Foreign Currency Usage Regulations, 2025 (GN No. 198 of 2025)

Tanzania has issued foreign currency usage regulations through a Government Notice (GN) 198 of 2025, which are effective from 28 March 2025. The 5 regulations are a result of changes introduced in the Finance Act, 2024, which amended the Bank of Tanzania Act to prohibit the use of foreign currency for transactions within Tanzania.

Key Matters in the Regulations

• Regulation 2 requires all goods and services within Tanzania to be priced in Tanzania shillings.
• Regulation 3 requires all transactions within Tanzania to be paid in Tanzania shillings. The following are listed as offences:
  • Setting prices in foreign currency
  • Receiving or demanding payment in foreign currency for local goods/services.
  • Refusing payments made in Tanzania shillings.

Exceptions

Regulation 4 provides a table of four types of transactions which can be made in foreign currency. These are:

• • Government contributions to regional organizations.
  • Transactions involving embassies and international organizations.
  • Foreign currency loans from local financial institutions.
  • Purchases from duty-free shops.

Note: The Minister of Finance in consultation with the Governor of the Bank of Tanzania can make changes to the list of transactions which can be made in foreign currency.

Restrictions on Contracts in Foreign Currency

Regulation 5 provide restrictions to enter into contracts in foreign currency as follows:

• • Local contracts for goods/services must be in Tanzania shilling unless falling under permitted exceptions as indicated above.
  • Entities with existing foreign currency contracts must amend them within one year from the effective date of the regulations.
  • Non-amended contracts will result in contract nullification unless an extension is granted by the Minister of Finance.

Implications to Businesses and other Entities

These regulations will affect businesses and entities in various sectors in Tanzania including real estate, tourism and hospitality, financial institutions, importers and exporters, non-governmental organisations (NGOs), financial institutions etc. These entities must undertake the following measures to ensure compliance:

• Amend contracts with foreign currency payments.
• Revising pricing structures to Tanzania Shillings
• Exclude foreign currency quotations from marketing and sales materials.
• Manage potential exchange risks by monitoring exchange rates and assess financial implications.
• Amend foreign exchange policies
• Undertake financial audits to spot non-compliant contracts and transactions.
• Update accounting and billing systems to process transactions in Tanzania shillings.

Kindly write to us through info@auditaxinternational.co.tz if you require support or further guidance on implications of the regulations to your organisation. For audit, tax, advisory and accounting services, kindly visit www.auditaxinternational.co.tz