BoT adresses false information on Tanzanian Shilling performance
What you need to know:
- BoT Governor Emmanuel Tutuba attributed the recent depreciation since January 2025 to the seasonal nature of foreign exchange flows and the country’s exchange rate policy, which allows flexibility based on market demand and supply with minimal central bank intervention.
Dar es Salaam. The Bank of Tanzania (BoT) has responded to recent reports regarding the performance of the Tanzanian Shilling, clarifying that while the currency depreciated by 3.6 percent over the past twelve months, it experienced a sharp appreciation of 9.51 percent between July and December 2024.
That made it the best-performing currency globally during that period.
BoT Governor Emmanuel Tutuba attributed the recent depreciation since January 2025 to the seasonal nature of foreign exchange flows and the country’s exchange rate policy, which allows flexibility based on market demand and supply with minimal central bank intervention.
“Despite currency fluctuations, Tanzania’s macroeconomic indicators remain strong. The economy grew by 5.4 percent in 2024, positioning it among the fastest-growing economies in Africa,” he said.
He reiterated that under this policy regime, the exchange rate continues to be determined by the demand and supply of foreign exchange in the market, with BoT intervening only minimally.
Strong outlook
Tanzania’s macroeconomic indicators show stable prices, a narrowing current account deficit, and a resilient financial sector that supports the stability of the Shilling in the medium to long term. Inflation remains low, standing at 3.1 per cent in February 2025, down from 4.6 per cent in 2022.
Contrary to recent reports, Governor Tutuba maintained that the national debt remains sustainable, with the debt-to-GDP ratio at 41.1 per cent in 2023/24—well below the International Monetary Fund (IMF) recommended threshold of 50 per cent.
The current account deficit has also narrowed significantly from 3.7 per cent in 2023 to 2.7 per cent of GDP in 2024, driven by improved exports, particularly in agriculture, mining, and tourism. This, he explained, contributed to the sharp appreciation of the Shilling observed towards the end of 2024.
Governor Tutuba stated that Tanzania’s economic performance aligns with reports from the World Bank, the Bank for International Settlements, the IMF, and global credit rating agencies.
BoT reaffirmed its commitment to maintaining price stability through effective monetary policies that ensure macroeconomic stability, including the stability of the Shilling.
Misleading reports
The BoT has dismissed claims made in an article published by an international media outlet on 19 March 2025, which alleged that the Tanzanian Shilling is the world’s worst-performing currency.
The report inaccurately linked the depreciation to increased imports, rising public debt, a widening current account deficit, and infrastructure projects such as the construction of the Bagamoyo Port, which has yet to commence.
BoT reassured the public that it remains committed to ensuring economic stability and that the recent fluctuations in the Shilling are within expected market trends.
