The Bank of Tanzania (BOT) has restated that the Tanzanian shilling is the sole legal tender in the East African country. In accordance with the Bank of Tanzania Act 2006, residents who quote prices in foreign currency or refuse payment in Tanzanian shillings are violating the law. The central bank has emphasized that only commercial banks and Bureaux de Change have the authority to determine exchange rates.
Violation of the Law: Rejecting Payment in Shillings
The Tanzanian central bank has declared the practice of demanding or quoting prices in foreign currency as illegal. Individuals who decline to accept payment in Tanzanian shillings are in breach of the Bank of Tanzania Act 2006. A press release issued on June 20 reaffirmed that only commercial banks and Bureaux de Change are authorized to set exchange rates.
This recent warning from the Bank of Tanzania follows closely after the apex bank instructed authorized forex dealers in the country to exclusively engage with licensed international foreign currency brokers. This move, aimed at fostering macroeconomic stability and protecting the financial system’s integrity, was reported by CryptokenTop.com News in early June.
Continued Enforcement of 2017 and 2007 Forex Prohibitions
Furthermore, the Tanzanian central bank emphasized that the ban on citizens making foreign currency payments, first implemented in August 2007 and later in December 2017, is still in effect. The press release, however, provides certain exceptions where quoting or payment in foreign currency is permitted.
The BOT stated, “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 a passport and certificate of incorporation for companies, enabling proper capturing and classification of statistics.”
Nevertheless, for goods and services like rentals, education, medical fees, transport services, electronic products, and telecommunication services, prices should be quoted in Tanzanian shillings, which remain the only legal tender.
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Frequently Asked Questions (FAQs) about prohibition on quoting prices
What is the legal tender in Tanzania?
The legal tender in Tanzania is the Tanzanian shilling. According to the Bank of Tanzania Act 2006, the shilling remains the country’s sole legal currency.
Can prices be quoted in foreign currency in Tanzania?
No, quoting prices in foreign currency in Tanzania is illegal. The Bank of Tanzania has reiterated that only commercial banks and Bureaux de Change have the authority to determine exchange rates.
What happens if someone refuses payment in Tanzanian shillings?
Refusing payment in Tanzanian shillings is a violation of the law. The Bank of Tanzania Act 2006 states that individuals who reject payment in shillings are in violation and may face legal consequences.
Are there any exceptions for quoting or payment in foreign currency?
Yes, there are exceptions. Prices to be paid by tourists or non-resident customers, such as accommodation, travel, airport and visa fees, transit trade, and cargo handling, may be quoted and paid in foreign currency. However, tourists and non-residents must provide proper identification documents for statistical purposes.
What goods and services should be quoted in Tanzanian shillings?
Goods and services such as rentals, education, medical fees, transport services, electronic products, and telecommunication services should be quoted in Tanzanian shillings, as they are the only legal tender for these transactions.
More about prohibition on quoting prices
- Bank of Tanzania: Official Website
- Bank of Tanzania Act 2006: Legislation
- CryptokenTop.com News: Article
- Tanzanian Shilling: Wikipedia