Dar es Salaam. The Bank of Tanzania (BoT) has refuted claims in a recent media report suggesting that the Tanzanian Shilling is the world’s worst-performing currency.
The article, published on March 19, 2025, attributed the currency’s depreciation to increased imports, rising public debt, a widening current account deficit, and major infrastructure projects, including the Bagamoyo Port, which has not yet commenced.
In response, the central bank clarified in a statement issued on March 24, 2025 that the Shilling has depreciated by 3.6 per cent over the past 12 months.
However, between July and December 2024, the currency appreciated sharply by 9.51 per cent, making it the best-performing currency globally before experiencing a reversal from January 2025.
This fluctuation, BoT explained, aligns with seasonal foreign exchange flows and the country’s exchange rate policy, which allows market-driven fluctuations with minimal central bank intervention.
“Under this policy regime, the exchange rate continues to be determined by the demand and supply of foreign exchange in the market with minimal intervention from the Bank,” BoT said in the statement.
The statement further noted that Tanzania’s macroeconomic fundamentals remain strong, with the economy growing by 5.4 per cent in 2024, placing it among Africa’s fastest-growing economies.
“Tanzania’s macroeconomic indicators show strong growth, stable prices, a narrowing current account deficit, and a resilient financial sector that supports stable Tanzanian Shilling in the medium to long term,” the statement added.
The Bank of Tanzania reassured the public of its commitment to maintaining price stability through effective monetary policies aimed at ensuring long-term macroeconomic stability, including a stable exchange rate.
