On 28 March 2025, the Government of Tanzania through Government Notice No. 198, published the Foreign Currency Regulations, 2025 (made under section 70 of the Bank of Tanzania Act, Cap 197)
Key message of the Regulations
- Emphasises on the use of TZS
- All prices for goods and services within Tanzania must be quoted in TZS
- Payments for goods and services in Tanzania must be done only in TZS
- Highlighted transactions that can be done in foreign currency
- Contributions paid by the Government to regional institutions within the country
- Transactions involving embassies and international organisations within Tanzania
- Loans provided by commercial banks and financial institutions within the country in foreign currency; and
- Payments for goods in duty-free shops.
Implication of these Regulations for businesses
- Businesses must review and amend contracts involving foreign currency within one year from the date of issuance of the Regulations.
- Revise pricing and payment systems to align with TZS requirements.
- Operational adjustments - Businesses handling multi-currency transactions need to evaluate their financial and accounting systems.
- Legal & Regulatory compliance - non compliance may attract penalties under the Bank of Tanzania Act.
Next steps for businesses
- Conduct an internal review of contracts, pricing, and invoicing systems.
- Seek regulatory guidance from legal and tax advisors
- Communicate changes to customers, suppliers and stakeholders.
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