The Bank of Tanzania (BOT) has issued a new clarification regarding the 2025 Foreign Currency Use Regulations, confirming that tourists are now officially allowed to pay for goods and services using foreign currencies while in Tanzania.
This announcement was made on June 8, 2025, in Arusha by Emmanuel Akaro, Director of Financial Markets at the Bank of Tanzania, during a panel discussion at the ongoing Karibu-Kilifair tourism exhibition.
Akaro explained that the new regulations aim to create a more business-friendly environment for international visitors, particularly within the tourism sector, which remains a major source of foreign exchange for the country.
“Local tourism agents are now permitted to use foreign currencies when paying for services provided to tourists visiting from outside the country,” said Akaro.
However, he emphasized that all transactions between residents must be conducted in Tanzanian Shillings (TZS), and it remains illegal for any service provider to reject payment made in the national currency.
The new regulations were enacted 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, we have seen positive results, including increased liquidity of foreign currencies. For instance, daily transactions in U.S. dollars on the retail forex market have risen from an average of USD 40 million to USD 69 million,” Akaro noted.
He further explained that the rise in forex transactions has helped stabilize the Tanzanian Shilling against the U.S. Dollar, and that the outlook is expected to remain strong as the peak foreign exchange earnings season continues.
“This is mainly due to the start of peak seasons for foreign exchange inflows, especially from sectors such as tourism, agriculture, and exports, which typically bring in substantial foreign revenues during this time,” he added.
The Bank of Tanzania assured the public that it will continue providing education on the implementation of the new regulations to ensure full compliance, with the broader goal of supporting the national economy and promoting sustainable growth across key sectors—especially tourism.
“We are committed to ensuring these guidelines are well understood and followed for the greater benefit of the country’s economy and the advancement of trade and tourism,” said Akaro.
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