According to the statement issued by the Bank of Tanzania (BoT) on Tuesday, there has been a growing trend of pricing goods and services for locals in US dollars. The central bank emphasized that this practice is a violation of directives issued in August 2007 and December 2017, which prohibit domestic payments for goods and services using foreign currencies for Tanzanian nationals.
The BoT has urged the general public to adhere to all directives and has warned that stern measures will be taken against anyone who continues to price goods and services in US dollars for locals. The Governor of BoT, Emmanuel Tutuba, expressed concern about violating these directives.
However, the statement clarified that tourists and non-resident customers are still allowed to pay for various goods and services using foreign currency. These services include accommodation, travel, airport and visa fees, transit trade, and cargo handling. Tourists and non-residents making payments in foreign currencies must provide identification documents such as passports or certificates of incorporation for proper recording and classification of statistics.
The central bank also emphasized that the exchange rate used for these transactions should be displayed and should not exceed the prevailing market exchange rate.
Additionally, the Bank of Tanzania reminded citizens that the Tanzania shilling is the only legal tender in the country, as stipulated in Section 26 of the BOT Act 2006. Therefore, refusing payment in Tanzanian shillings to another Tanzanian resident is illegal.
In summary, the Bank of Tanzania has announced that pricing goods and services for locals in US dollars violate directives and stern measures will be taken against those who continue this practice. However, tourists and non-residents are still allowed to pay in foreign currency for certain services as long as proper identification documents are provided. The Tanzania shilling remains the only legal tender within the country.