The Tanzanian shilling, also known as the shillingi, is the official currency in East African Tanzania, although the American dollar is also widely used and acceptable. While this currency may not be as popular as other world currencies, there are some interesting facts worth knowing about.
These facts have to do with its history, the transition of banknotes, denominations of coins, exchange rates with other popular world currencies, and finally its value as a national heritage.
Tanzania shilling facts
History of the Tanzanian Shilling
Like all civilizations around the world, the need for a medium of exchange was necessary due to the unlimited human needs. Dough trading, in which goods were exchanged for goods or services, used to be the main form of trade. This was problematic as it was not easy to set a consistent value for goods and services.
With the coming of the colonialists, a means of barter was introduced by the colonial governments. Between 1882 and 1908 the currency was the Zanzibar ryal. This was then replaced by the Zanzibari rupee from 1908 to December 1935 (1 year equaled 2 years). On January 1, 1936, all Zanzibari banknotes were withdrawn.
In addition to the Zanzibar currencies, all British colonies and protectorates in East Africa including Tanzania used a currency known as the East African Rupee. This was used between 1906 and 1921 and replaced by the East African florin. The latter was then replaced by the Tanzanian shilling, which was exchanged at 2 shillings for 1 florin. Since the introduction of the Tanzanian shilling, it has established itself as the official and preferred medium of exchange in Tanzania.
Transition of banknotes
Benki Kuu Ya Tanzania (Central Bank of Tanzania) introduced banknotes on June 14, 1966. These included banknotes for 5, 10, 20 and 100 shillings. In 1972 the 5 shillingi note was replaced by a coin. In 1985 the 50 shilling note was introduced, followed by 200 shillings in 1986, 500 shillings in 1989 and 1000 shillings in 1990.
The 10, 20, 50 and 100 shillingi notes were all replaced by coins in 1987, 1990, 1996 and 1994. Subsequently, notes for 2000, 5000 and 10000 were introduced in 2003 and 1995. From 2003, 500, 1000, 2000, 5000 and 10000 banknotes were used.
In 2011, Benki Kuu Ya Tanzania revised the banknotes in terms of size, content and the watermark. While all 2003 series were watermarked with giraffes, the 2011 series use electrotype of the note value and portrait of founding Tanzanian President Julius Kambarage Nyerere.
The 2011 notes are a few inches smaller than their predecessors and they watch side feature the Tanzanian coat of arms. The reverse sides differ and present important achievements and main economic activities of the country.
Tanzanian shilling coin denomination
The Central Bank of Tanzania introduced coins in 1966 in denominations of 5, 20 and 50 senti (cents) and 1 shillingi. The 5 senti coins were made of bronze, 20 senti of nickel brass and the 50 and 1 shillingi coins of cupronickel. In 1972 the 5 shillingi cupro-nickel was introduced and in 1977 the nickel-brass 10 shillingi coin was introduced.
In 1987 cupro-nickel was replaced by nickel-plated steel in 50 and 1 shillingi and 5 (octagonal shape) and 10 shillingi cupro-nickels were introduced. Later in 1990 nickel plated 5, 10 and 20 shillings were introduced. Brass coins of 100 shillings were introduced in 1994, 50 shillings in 1996 and 200 shillings in 1998. 50, 100 and 200 shillings are currently in circulation.
Tanzanian Shilling Exchange Rates
The Tanzanian shilling is not a strong currency on the international market better than many currencies in Africa. The Tanzanian currency is quite weak against the main currencies. The exchange rates are as follows; 0.00062 US dollars = 1 TZS, 0.00040 British pounds = 1 TZS and 0.00047 euros = 1 TZS. Note that the Tanzanian Shilling, like any other currency, is highly volatile and subject to changes on the international trading platform as demand and supply permit.
Tanzanian shilling as a national heritage
The Tanzanian shilling is not just a medium of exchange; it is also a mark of national heritage for citizens. The notes have Tanzanian coat of arms, important infrastructure as well as the personalities that unite the country. The Tanzanian way of life is very social (undugu) and one person is known as Julius Kambarage Nyerere. The founding president takes care of that.
Read: Facts About Ugandan Shilling
If you ask any Tanzanian they will tell you that Ujamaa or Undugu is their way of life. It’s a form of socialism or communism and this is symbolized by their currency. One of her notes includes some special plants that power the country’s economy. Another banknote also has a university building, reflecting the country’s educational power.