Dodoma. The government has reaffirmed that all domestic transactions in Tanzania must be conducted in Tanzanian shillings, in line with the Regulations on the Use of Foreign Currency, 2025, warning that quoting prices or demanding payment in foreign currencies for local transactions is illegal and undermines the national currency.
The renewed call came in Parliament on Thursday after lawmakers questioned the continued practice of pricing land, houses, school fees and other goods and services in US dollars despite regulations prohibiting the practice.
Special Seats MP Suma Fyandomo urged the government to strengthen public awareness and enforcement of the regulations, saying the widespread use of the US dollar in domestic transactions was unnecessary and diminished the value of the Tanzanian shilling.
“You find advertisements where someone says they are selling a plot of land for 200,000 US dollars instead of simply stating the price in Tanzanian shillings,” she told Parliament.
Fyandomo said she had travelled to several countries without ever being required to use foreign currencies for local transactions, arguing that Tanzanians should likewise respect and use their own currency.
Responding to the concerns, Prime Minister Mwigulu Nchemba reminded citizens and businesses that all prices and payments for domestic transactions must be quoted and settled in Tanzanian shillings.
“Those quoting prices for land, school fees, house rentals, services or other transactions in US dollars or any other foreign currency are violating our laws and are not acting patriotically toward Tanzania,” Nchemba said.
He referred to the Foreign Currency Usage Regulations, 2025, issued under Section 26 of the Bank of Tanzania Act, 2006, which require domestic transactions to be conducted in the local currency except in circumstances specifically permitted by law.
The regulations were published in Government Gazette No. 198 on March 28, 2025, as part of broader measures introduced by the government to strengthen the use of the Tanzanian shilling following pressures caused by a shortage of US dollars in the local market.
Nchemba attributed the continued preference for the US dollar by some businesses to what he described as outdated colonial-era attitudes rather than economic necessity.
“It is simply imitation, like a chicken whose legs were once tied and still believes it is restrained even after the rope has been removed,” he said. “Some people are still suffering from a colonial hangover.”
He said the government’s immediate priority was to educate the public rather than impose penalties. However, he warned that the misuse of foreign currencies in domestic transactions could also facilitate illicit financial activities, including attempts to disguise transactions or launder money.
“The government prefers education first,” he said. “But people should understand that quoting prices in foreign currencies for local transactions is not only illegal, it can also create opportunities for financial misconduct.”
