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After nearly a year of anticipation, the Bank of Tanzania (BoT) has officially released the Bank of Tanzania (Use of Foreign Currencies) Regulations, 2025 on 28 March 2025 (the Regulations). These long-awaited regulations reaffirm the Tanzanian Shilling (TZS) as the primary currency for all transactions within Tanzania, while also setting out specific exceptions where foreign currencies may still be used.
10 April 25
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Importantly, the Regulations require all existing contracts that include foreign currency payment terms, including employment agreements, to be amended to reflect TZS payments within one year from the effective date, that is, by the end of March 2026. Contracts not amended within this timeframe will be rendered void. Businesses may apply for an extension; however, such extensions cannot exceed the original contract duration. This requirement may prove disruptive, especially for multinational businesses or investors who have long-standing agreements denominated in foreign currency.
Given the far-reaching implications of these Regulations, we strongly urge businesses to consult legal and financial advisors immediately to mitigate compliance risks. Additionally, businesses should actively engage with industry groups and government authorities to seek clarifications on, among other things, pricing policies, exemptions, dual pricing (that is, whether displaying both TZS and foreign currency prices is permitted), and whether TZS payments can be dollar currency pegged.
This alert summarises the Regulations and highlights the key requirements for immediate compliance. Notably, the Regulations are currently available only in Swahili. Our analysis is based on the broad wording of the text, and we recommend verifying these interpretations against the official English version once published.
We will continue to provide commentary on this matter when there are further developments.
Click here to download and read the full alert.
Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Shemane Amin or Geofrey Dimoso.
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Contributor
Samiath Mohamed – Senior Associate