Current Status of US Dollar Usage in Tanzania (2025)
Since March 2025, Tanzania has implemented strict regulations requiring Tanzanian Shillings (TZS) as the primary currency for most domestic transactions. The country has not completely banned US dollars but has significantly restricted their use through new Foreign Exchange Regulations.
Where US Dollars Are Still Accepted
✓ Tourism Industry Exceptions
Tour operators are permitted to issue invoices and accept payments in foreign currencies when dealing with international tourists. This includes:
- Safari bookings – Direct payments to tour operators
- Hotel reservations – International hotel chains and luxury lodges
- Flight bookings – International airlines and travel agencies
- Tourism packages – Pre-arranged tour services
✓ Official Exchange Channels
Tourists and foreigners can use foreign currencies through official channels by exchanging money at licensed banks or forex bureaus. Accepted locations include:
- Commercial banks – All major Tanzanian banks
- Licensed exchange bureaus – Government-approved forex dealers
- Airport exchange counters – At international airports
- Hotel exchange services – In major tourist hotels
✓ Digital Payment Methods
Bank cards and other digital payment methods using foreign currencies are still permitted. This covers:
- International credit cards – Visa, Mastercard, American Express
- Debit cards – With international networks
- Mobile payment apps – International services like PayPal
- Bank transfers – Wire transfers in USD
Where US Dollars Are NOT Accepted
✗ Daily Transactions
For everyday expenses such as restaurants, shops, taxis, and other local services, travelers must use Tanzanian shillings. This includes:
- Restaurants and cafes – Local dining establishments
- Retail shops – Clothing, souvenirs, groceries
- Transportation – Taxis, buses, local transport
- Street vendors – Markets and roadside vendors
- Gas stations – Fuel purchases
- Tips and gratuities – Service staff payments
✗ Cash Transactions
The Bank of Tanzania has outlawed the use of foreign currencies, including the U.S. dollar, for the purchase and sale of goods and services within the country. Direct USD cash payments are prohibited for most domestic transactions.
How to Exchange US Dollars in Tanzania
Exchange Process Requirements
Foreigners must exchange their money at licensed banks or forex bureaus following these steps:
- Locate authorized dealers – Use only licensed institutions
- Bring valid identification – Passport or official ID required
- Check current exchange rates – Current rate approximately 2,498 TZS per 1 USD
- Request exchange receipt – Keep for your records
- Use TZS immediately – For all local purchases
Best Exchange Locations
- Bank branches – Most reliable rates and security
- Airport counters – Convenient but potentially higher fees
- Hotel services – Available but check rates first
- Authorized bureaus – Compare rates between locations
Legal Implications and Penalties
Enforcement Measures
Following changes to the Bank of Tanzania Act, it is now officially an offense to transact in USD contrary to what the law provides. The regulations are enforced through:
- Regular inspections – Of businesses and service providers
- Public reporting – Citizens encouraged to report violations to the central bank
- Financial penalties – For non-compliance
- Business sanctions – Potential license revocation
Compliance Requirements
Businesses must:
- Price in TZS only – All prices of goods and services must be declared in Tanzanian shillings
- Accept TZS exclusively – For domestic transactions
- Maintain proper records – Of all currency exchanges
- Report violations – Any illegal currency use
Practical Tips for Travelers
Before You Arrive
- Bring USD in good condition – Clean, undamaged bills
- Research exchange rates – Know current market rates
- Plan exchange strategy – Budget for immediate TZS needs
- Download banking apps – For digital payment options
Upon Arrival
- Exchange at airport – Get initial TZS for transport
- Find nearest bank – For larger exchanges
- Keep receipts – All exchange documentation
- Use cards when possible – Avoid cash complications
During Your Stay
- Monitor spending – Track TZS usage carefully
- Plan regular exchanges – Don’t run out of local currency
- Keep some USD – For tourism services and emergencies
- Respect local laws – Always use TZS for local purchases
Economic Background
Reasons for Currency Restrictions
The policy stems from a 2023-2024 dollar shortage, aiming to stabilize the economy and curb unregulated currency exchange. Key objectives include:
- Economic sovereignty – Strengthening the domestic currency
- Inflation control – Reducing foreign exchange pressure
- Regulatory oversight – Better monitoring of currency flows
- Market stability – Preventing unofficial dollarization
Implementation Timeline
- 2024 – Initial regulations proposed
- March 2025 – Full implementation of foreign currency ban
- Present – Active enforcement phase
- Future – Continued monitoring and adjustments
Frequently Asked Questions
Can tourists still use USD?
Tanzania has not imposed a complete ban on US dollars but has introduced strict regulations. Tourists can use USD through official channels and for tourism services.
What happens if I pay with USD cash?
Direct USD cash payments for local goods and services are prohibited and subject to penalties under current regulations.
Are credit cards affected?
No, international credit and debit cards remain fully functional for all types of transactions.
How much should I exchange?
Exchange enough TZS to cover daily expenses like meals, transport, shopping, and tips. Keep some USD for tour payments and emergencies.
