Why BoT’s foreign currency ban will boost tourism sector

DODOMA: THE Tanzania Tourism Sector Safety and Protection (TTSSP) has welcomed the Bank of Tanzania’s (BoT) recent directive banning the use of foreign currencies for local transactions, saying the move will strengthen the tourism industry, attract more visitors and boost national earnings.

Speaking exclusively to the Daily News in Dodoma over the weekend, TTSSP Chief Executive Officer and Founder, Dr Majaliwa Maswila described the BoT directive as a landmark decision that supports economic sovereignty, financial transparency and equitable business practices, principles that align with TTSSP’s mission to protect and promote Tanzania’s tourism sector.

Dr Maswila noted that using the Tanzanian Shilling (TSh) as the sole currency for domestic transactions will bring predictability in pricing and budgeting for tourists, ensuring a fairer and more transparent tourism experience.

“Using a single official currency for all local transactions reduces the risk of price manipulation or unfair exchange rates. This can enhance the overall experience for tourists and contribute to better service delivery,” he said.

Dr Maswila said that the ban will help return economic control to locals and enable the government to better monitor financial flows, fostering greater economic stability, especially in key sectors like tourism.

“When tourism transactions are conducted in the local currency, local businesses benefit directly and the sector becomes more integrated into the national economy,” he noted.

He added that while TTSSP’s core mandate is focused on tourists’ safety and protection, the broader economic stability resulting from this policy will help make Tanzania a more attractive, reliable and sustainable destination for international travellers.

Dr Maswila praised President Samia Suluhu Hassan’s visionary leadership, applauding the government’s commitment to ensuring a well-regulated and inclusive economy.

In its recent public notice, the BoT directed that all local transactions be conducted in Tanzanian Shillings. Foreigners, including tourists, are required to exchange their foreign currency through commercial banks or licensed Bureaux de Change.

The directive also states that foreign bank cards and digital payments should remain valid options for foreign visitors.

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BoT clarified that it is an offence to quote, advertise, or display prices in foreign currency.

It is also an offence to compel or accept payment in foreign currency for domestic transactions as well as refuse payment made in Tanzanian Shillings.

The updated regulations impose time limits on contracts executed in foreign currency and prohibit the execution or renewal of contracts requiring foreign currency payments, effective March 28th, this year. Specific exceptions for foreign currency use are outlined in the regulations.

Listed on the Tanzania Tourism Board (TTB) website as a key sectoral stakeholder, TTSSP plays a critical role in ensuring the safety, rights and overall well-being of tourists visiting the country.

The organisation works closely with the government and law enforcement agencies to enhance tourism safety, provide technical guidance on tourism development and support visitor registration systems.

It also contributes to building trust and confidence among international travellers.

“A stable economic environment and fair pricing structures help strengthen Tanzania’s image as a touristfriendly country. This policy will support that reputation and help us compete effectively in the global tourism market,” Dr Maswila concluded.