Why the Shilling remained stable in 2022 amid shocks 

Dar es Salaam. The Tanzanian shilling maintained stability against the dollar and other major currencies as depreciation remained below one percent throughout 2022, despite the shocks in the global economy.

According to the Bank of Tanzania (BoT)’s director of economic research and policy Dr Suleiman Missango supported by sound economic prospects and conducive monetary policies last year, the local currency depreciation was moderate and sustainable.

“The war in Ukraine broke late February, and the shilling had been depreciating moderately since the outbreak of the war, with the rate of depreciation remaining small at less than one percent over year on year basis,” he said.

Data from the BoT’s monthly economic review (MER) for December 2022 indicated that by the end of November of last year, the shilling remained stable against the United States dollar consistent with a moderate inflation rate, trading at an average rate of Sh2,319.87 per dollar.

That was a 0.4 percent depreciation rate from an exchange rate of Sh2,309.23 per dollar that was recorded in January 2022.

By January 19, 2023, the year-on-year depreciation rate has also remained stable below one percent at 0.49 percent trading at Sh2320.65 a dollar.

Dr Missango said, “Tanzanian shilling has been and continues to be one of the most stable currencies in sub-Saharan Africa in 2022 regardless of the global shocks,”