THE Bank of Tanzania wishes to clarify information about the misleading article that has been circulating in various media outlets.
The article,published on 19 March 2025, purported thatthe Tanzanian Shilling is the worst-performing currency in the world.
It inaccurately attributes this trend to increased imports, increased public debt, widening of the current account deficitand implementation of the infrastructure projects, including the construction of theBagamoyo port, which has not yet started.
Regarding the trend of the Tanzanian Shilling against the United States Dollar, over the lasttwelve months to date, the Shilling depreciated by 3.6 percent.
However, it is worth notingthat,intra-period, from July to December 2024, the Shilling steeply appreciated by 9.51percent,becoming the best-performing currency in the world before reversing its trend from the beginning of January 2025.
This is consistent with the seasonal nature of foreignexchange flows in the country and the Bank's foreign exchange policy, which allowsexchange rate flexibility.
Under this policy regime, the exchange rate continues to bedetermined by the demand and supply of foreign exchange in the market with minimalintervention from the Bank.
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 themedium to long term.
The economy grew by 5.4 percent in 2024, making it one of the fastest-growing economies in Africa.
Inflation remains stable and low at 3.1 percent in February2025, decreasing from 4.6 percent in 2022. Contrary to the assertion made in the published;
