Tanzanian Shilling continues with steady gains against major global currencies

Dar es Salaam. The Tanzanian shilling has continued its upward trajectory against major global currencies, with the US dollar experiencing a significant depreciation.

On Tuesday, the Bank of Tanzania (BoT) quoted the shilling at Sh2,513.1169 per US dollar, but by December 13, 2024, it had strengthened to Sh2,294—the lowest exchange rate of the year.

In addition to its gains against the dollar, the shilling has also appreciated against the Euro and the British pound, trading at Sh2,406 and Sh2,919, respectively.

This marks a notable improvement for the Tanzanian currency, which has shown resilience amid global economic fluctuations.

Regionally, the Tanzanian shilling has outperformed the Kenyan shilling, trading at a rate of 17.7 compared to 21 just a few weeks ago, it has also appreciated against the Uganda Shilling signaling its growing strength in East Africa.

BoT Governor Emmanuel Tutuba attributes the shilling's steady appreciation to several factors, including the stabilization of the US economy and lower interest rates in the United States. These factors have prompted investors to seek opportunities in other markets, leading to a higher supply of US dollars on the global market.

As the Tanzanian shilling reaches a 10-month high against the US dollar, the government remains optimistic about the trend’s sustainability.

Projections indicate that the shilling will likely maintain its strength well into 2025, with expectations for continued stability through at least February 2025.

This positive shift in the currency market is seen as a sign of Tanzania's growing economic resilience and attractiveness to investors.