TZS

The Tanzanian shilling, with ISO code TZS, is the official currency of Tanzania, including the semi-autonomous region of Zanzibar. The currency is commonly abbreviated or denoted in writing as Sh or TSh, while financial transactions often use the code TZS. One shilling is divided into 100 cents, though cent coins are rarely used today due to inflation; most everyday transactions occur in whole shillings.

The Bank of Tanzania, the country’s central bank, issues and regulates the shilling and is responsible for monetary policy and financial stability. Banknotes and coins are issued in a range of denominations to accommodate daily transactions and price levels, reflecting the dynamics of inflation and the economy.

History and usage: The Tanzanian shilling was introduced in 1966, replacing the East African shilling after Tanzania’s consolidation of Tanganyika and Zanzibar into a single state. The Bank of Tanzania took over monetary responsibilities at that time, and the shilling has remained the country’s official currency since then. The currency circulates throughout Tanzania and is also used in Zanzibar; foreign exchange activities occur with neighboring markets and international trade.

Economic role: The TZS participates in Tanzania’s economy with exchange rates determined by the foreign exchange market and occasional central-bank interventions. Its use is predominantly national, with most tourism, commerce, and government transactions conducted in Tanzanian shillings, while foreign currencies are often exchanged for larger purchases or for international travel.