The Bank of Tanzania addresses recent reports on the Tanzanian Shilling’s depreciation, emphasizing its prior appreciation and the nation’s robust economic performance.
The Bank of Tanzania (BoT) has responded to recent discussions regarding the Tanzanian Shilling’s performance.
While the currency experienced a 3.6% depreciation over the past twelve months, it notably appreciated by 9.51% between July and December 2024, ranking as the best-performing currency globally during that period.
The currency depreciation since January 2025 has occurred due to seasonal foreign exchange flow patterns while the nation follows a market-based exchange rate policy requiring minimal central bank involvement.
The currency fluctuations have no impact on Tanzania’s healthy macroeconomic position.
The 5.4% economic growth rate of 2024 put Tanzania among the top performers of African economies.
The inflation rate decreased to 3.1% during February 2025 from its previous level of 4.6% in 2022.
The current account deficit showed improvement in 2024 as it diminished from 3.7% of GDP to 2.7% because the export sectors of agriculture, mining and tourism enhanced their performance.
Governor Tutuba assured that the debt-to-GDP ratio for 2023/24 amounts to 41.1% which falls considerably below the International Monetary Fund’s suggested threshold of 50%.
The economic performance of Tanzania matches the assessments made by international financial institutions especially the World Bank and the International Monetary Fund.
The Bank of Tanzania responded to world media claims from March 19, 2025 that the Tanzanian Shilling held the worst-performing currency status by refuting the statements based on normal market trend movement.
The Bank of Tanzania maintains its focus on price stability by executing strong monetary policies which support financial stability and strengthens the Tanzanian Shilling value.
