https://www.msn.com/en-xl/afri...s-dollar/ar-BB1oik80


Tanzania issues directive to curtail rampant use of US dollar


Story by Paul Owere • 15h • 2 min read

Dar es Salaam. The Tanzania’s Finance minister, Dr Mwigulu Nchemba, issued a decisive directive yesterday, aimed at curbing the widespread use of the US dollar within the country in a bid to address a critical challenge impacting the economy.In his budget speech to the national assembly, Dr Nchemba highlighted the detrimental effects of dollarisation, where both public and private institutions demand payments in foreign currency for goods and services provided domestically, exacerbating the shortage of dollars and hindering economic progress.The directive mandates that all transactions be conducted and advertised in Tanzanian shillings, aligning with the legal framework of the country and promoting financial stability.Additionally, the minister emphasised the importance of reducing reliance on imports and fostering domestic production to conserve foreign currency reserves and bolster economic growth.The minister expressed concern over the practice of some institutions, including governmental bodies, requiring Tanzanians to pay fees, rent, work permits, licenses, and other charges in dollars.He emphasised that this situation not only increased the unnecessary demand for foreign currency, but also deprived those in need of dollars for essential goods and services from outside the country.Furthermore, Dr Nchemba reiterated the legal framework stipulated in Section 26 of the Bank of Tanzania Act of 2006, which designates the Tanzanian shilling as the sole legal tender for domestic payments.Any transactions conducted domestically in foreign currency are deemed an offence under this act.To address these challenges head-on, the minister issued a directive with effect from July 1, 2024, instructing all stakeholders, including public institutions, businesses, civil society organisations, international entities and individuals, to cease the practice of pricing goods and services in foreign currency.It was mandated that all transactions must be conducted and advertised in Tanzanian shilling, aligning with the legal framework of the country.Additionally, Dr Nchemba directed government institutions responsible for levying taxes, fees and charges to adjust their regulations accordingly.“Henceforth, all such payments were to be made in shillings, promoting financial stability and compliance with the law,” he said.The minister emphasised that even visitors to Tanzania are encouraged to exchange their foreign currency for Tanzanian shillings to facilitate transactions and support the local economy.He cautioned against the detrimental practice of relying on foreign currency, which often led to depreciation of the Tanzanian shilling and hindered economic progress.Dr Nchemba further highlighted the need for Tanzania to effectively utilize its resources and promote value addition to domestically produced goods.He stressed the importance of reducing reliance on imports and fostering domestic production to meet the needs of the population, thereby conserving foreign currency reserves and promoting economic growth. Provided by SyndiGate Media Inc. (Syndigate.info
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I used to travel with up to USD20,000 but generally changed to shillingi to pay local stuff. Things must have changed a bit since I was there to prompt this.

My understanding is that when in arriving in Tanzania, you must obtain an entry visa for $100 US in recent notes. Has this changed?

Nothing is going to change.

This is done for local public consumption.

quote:

Originally posted by England:
My understanding is that when in arriving in Tanzania, you must obtain an entry visa for $100 US in recent notes. Has this changed?

The older notes are not officially accepted by any institution, banks included and to my knowledge the fee for a Tourist visa is $50.

I applied about two weeks ago and received mine and was $100.00.

Over the past roughly 8 months a parallel market has developed for USD, with about a 10% spread between the official rate declared by the Bank of Tanzania, and the unofficial street level rate. Rather than trying to deal with the source of the issue, the government has come up with this nonsense, which won't work in solving the underlying problem.

Given the exchange rate of around 2,150 to one, I haven't checked lately, I'll stick to dollars if I can. Last time I went to an ATM in Tanzania, I got $400 of cash and got a wad of cash that I could barely fit in the pocket of my pants.