This Country Just Banned the U.S. Dollar – Here is Why
A growing number of nations are moving to reduce dependence on foreign currencies in everyday commerce — and one of the latest examples comes from East Africa.
Tanzania has formally prohibited the use of U.S. dollars and all other foreign currencies for transactions within its borders, according to a directive issued by the country’s central bank.
The Bank of Tanzania declared that only the Tanzanian Shilling (TZS) is now recognized as legal tender for pricing and payment of goods and services inside the country. This decision follows a surge in foreign currency use in domestic markets, which had started to sideline the national currency in day-to-day transactions.
Businesses, consumers, and institutions are now legally bound to quote and accept payments exclusively in shillings. The ban not only outlaws accepting or paying with U.S. dollars, but also criminalizes displaying prices or conducting advertising in any foreign currency. Any violation of this regulation will be treated as a legal offense.
This bold move echoes the broader de-dollarization movement championed by the BRICS bloc which has been pushing for greater reliance on local currencies in global trade. Inspired by this trend, Tanzania appears to be applying similar principles to its domestic economy in an effort to strengthen its sovereign monetary system.
Tourists are also subject to the regulation. Whether paying for accommodation, tours, or other services, all foreign visitors must now convert their money into Tanzanian Shillings. Exceptions to the rule are few and clearly defined, including limited use cases by embassies, regional government contributions, and certain international corporations — all of which must disclose the nature of any foreign-currency transactions they perform.
While BRICS itself has faced challenges in dethroning the dollar at a global scale, Tanzania’s policy shows that on a national level, firm action can be taken. The move has sparked further debate around whether other developing economies will follow suit.
As enthusiasm for local currency settlement spreads, the cumulative effect could erode one of the pillars of U.S. global economic influence. And while a complete shift away from the dollar is unlikely in the near term, these developments mark a growing willingness to challenge the status quo — one domestic policy at a time.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
