Arusha — The Bank of Tanzania (BoT) has issued a clarification on the new foreign currency usage regulations for the year 2025, aiming to create a more business-friendly environment, particularly in the tourism sector.

Speaking during a special panel discussion held at the Karibu-Kilifair exhibition in Arusha, BoT's Director of Financial Markets, Emmanuel Akaro, said the payments for goods and services between residents and non-residents, including tourists, are allowed to be made using foreign currencies.

"Tour operators who are residents are permitted to use foreign currencies to pay for various services provided to international tourists," said Akaro, noting that this move is intended to facilitate smooth transactions and attract more foreign visitors to the country.

However, he emphasized that for transactions between Tanzanian residents, all payments must be made in Tanzanian shillings, and it is an offense for any service provider to refuse payments made in the national currency.

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The regulations were formulated under Section 26 of the Bank of Tanzania Act of 2006 and officially came into effect on March 28, 2025.

According to Akaro, the implementation of these regulations has already yielded positive outcomes, including an increase in the availability of foreign currency in the local market. He cited an example that retail foreign exchange transactions in US dollars have risen from an average of 40m Us dollars to 69m US dollars per day.

"These results demonstrate that this measure is a positive step toward economic growth and the development of the tourism sector in the country," he concluded.