Tanzania moves to ban foreign currency for local payments
Tanzania is planning to stop the use of foreign money for business and other payments inside the country.
According to the government, people must use only the Tanzanian Shilling for all transactions.
The Bank of Tanzania has changed its rules in line with this directive and is now working with the Ministry of Finance to create new regulations that will make it illegal to use foreign currencies for local trade.
The new rule is scheduled to take effect on July 1, according to Business Insider Africa.
Officials say this move will help protect the Tanzanian economy.
They explain that, when people use foreign money inside the country, it reduces the amount available for importing important goods, weakens the national currency and adds pressure on prices.
The Bank of Tanzania has already told commercial banks to stop accepting foreign currencies for services like paying taxes, goods, and other fees.
Anyone found making local payments in foreign money will be liable to the law.
The government says the aim is to keep the Tanzanian Shilling strong and ensure that foreign currency is used only where it is really needed, such as for buying essential imports.
