Tanzanian Central Bank Says Quoting Prices in Foreign Currency Against the Law

The Bank of Tanzania (BOT) has reiterated that shillings remain the East African country’s sole legal tender. The apex bank said residents quoting prices in foreign currency or those refusing payment in Tanzanian shillings are in violation of the Bank of Tanzania Act 2006. The central bank said only commercial banks and Bureaux de Change are allowed to determine exchange rates.

Rejecting Payment in Shillings a Violation of the Law

The Tanzanian central bank has said the practice of demanding or quoting prices in foreign currency is illegal and that those refusing to accept payment in Tanzanian shillings are in violation of the Bank of Tanzania Act 2006. In a June 20 press release, the bank also reiterated that only commercial banks and Bureaux de Change are allowed to determine exchange rates.

The latest warning by the Bank of Tanzania (BOT) came barely a month after the apex bank told the country’s authorized forex dealers to only trade with licensed international foreign currency brokers. As reported by Bitcoin.com News in early June, the Tanzanian central bank viewed the forex restrictions as a step that helps to “foster macroeconomic stability and safeguard the stability of the financial system.”

2017 and 2007 Forex Prohibitions Still in Effect

Meanwhile, in a warning apparently aimed at those ostensibly seeking to dollarize the economy, the Tanzanian central bank reiterated that the Aug. 2007 and later, Dec. 2017, prohibition on foreign currency payments between citizens is still in effect. Still, the press release stipulates the few instances wherein the quoting or payment in foreign currency is not forbidden.

“Prices to be paid by tourists or non-resident customers may be quoted and paid in foreign currency. These include services such as accommodation, travel, airport and visa, transit trade and cargo handling. Tourists and non-residents who pay in foreign currencies must provide their identification documents such as passport and certificate of incorporation for companies for proper capturing and classification of statistics,” the BOT said in the statement.

However, according to the central bank, for goods and services such as rentals, education and medical fees, prices should be quoted in Tanzanian shillings which remain the only legal tender. The same rules also apply to transport services, electronic products and telecommunication services.

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