Ministry clarifies order on dollar ban

Dar es Salaam The Ministry of Finance and Planning has said services that can be charged in foreign currencies are only those offered to tourists and foreigners.

A statement to clear the air on the issue was released yesterday, only a day after Finance and Planning minister Philip Mpango issued an order for businesses to stop charging all Tanzanian residents in US dollars or other foreign currencies.

It noted that services such as accommodation, travel, airport and visa, as well as transit trade and cargo handling fees at the Dar es Salaam Port can be charged in US dollars or other foreign currencies.

The targeted clients are tourists and non-residents. But where the se services are offered to residents, payment has to be made in shillings.

“Tourists and non-residents who are charged in US dollars or other foreign currencies must provide their IDs or passports for proper identification,” the statement said.

In case the price quotation is done in foreign currencies but the payment is made in the local currency then the exchange rate to be used must be the market rate of the particular day as determined by bureaux de change and commercial banks, the statement added.

“No Tanzanian resident should be forced to pay in foreign currencies for services or commodities sold in Tanzania,” the statement added. The statement further noted that the government has notices that some services, including rent in leafy suburbs and in commercial buildings, university fees and the selling of electronic appliances, have been charged in US Dollars in contravention of the country’s laws.

The implementation of the directive starts effective on January 1, 2018 and that the Police will make checks to see whether businesses comply, the statement further added.

Speaking to reporters on the issue of dollarization of the economy on Friday in Dar es Salaam, Dr Mpango spoke of the need to amend the law to completely restrict the use of foreign currencies to residents.

“The law does not prohibit making price quotations using foreign currencies. It only provides penalties for those refusing to accept the Shilling in payments. Amendments will have to be made to make it illegal charge residents in foreign currencies.”