Bank of Tanzania grants licenses to hotels for bureau de change operations

Dar es Salaam. The Bank of Tanzania (BoT) said it has approved licenses for more than 30 hotels to establish bureau de change, in efforts to streamline currency exchange services within the hospitality sector and ensure compliance with the national financial regulations.

The central bank introduced new Foreign Exchange (Bureau de Change) Regulations last year, which allowed the hotels with three stars and above to establish the money shops with no minimum capital required.

BoT senior inspector for financial sector supervision, Mr Gwamaka Charles, said that the move will ease the currency exchange process for both international and local visitors who have had to seek such services outside their hotels.

“We have granted licenses to over 30 hotels across the country, enabling them to offer bureau de change services within their premises,” said Mr Charles during the official launch of a new bureau de change at the Hyatt Regency Hotel in Dar es Salaam, at the weekend.

“Such development not only provides convenience for guests but also ensures that all transactions are conducted legally and in accordance with the law,” he added.

He emphasised that the central bank’s regulatory framework mandates that all payments in Tanzania be made in the local currency, the Tanzanian Shilling.

The introduction of bureau de change within hotels will support the requirement by providing a legal and accessible means for guests to convert their foreign currency, he said.

Mr Charles further clarified that the licensing requirements for hotels are relatively lenient compared to other currency exchange operators, who are required to have a starting capital ranging from Sh200 million to Sh1 billion. The hotels have no requirement for minimum capital.

According to him, exchanging foreign currency without proper licensing is illegal and could result in a prison sentence of up to 14 years or a fine of Sh4 million, or both.

“The establishment of these licensed bureau de change within hotels is a positive step for both the hospitality industry and the customers they serve.

It not only prevents the inconvenience associated with seeking these services elsewhere but also aligns with the legal requirements,” Mr Charles added.

Hyatt Regency was among the first hotels to receive a license for the service.

Speaking at the event, the hotel’s general manager, Mr Alexander Eversberg, expressed satisfaction with the new offering, which he said would significantly enhance the guest experience.

“Guests at our hotel will now be able to exchange currency conveniently within the hotel premises, something that was previously unavailable,” Mr Eversberg said.

“This service is not just about convenience; it is also about ensuring compliance with the central bank requirements,” he added.