Does Tanzania Use Dollars?
Tanzania, a country located in East Africa, has a unique monetary system that often raises questions among both locals and foreigners. One of the most common queries is whether Tanzania uses dollars. In this article, we will explore the currency system in Tanzania and answer this question in detail.
The Currency System in Tanzania
Tanzania’s official currency is the Tanzanian Shilling (TZS). The country has been using the shilling since its independence from the United Kingdom in 1961. However, due to the country’s trade relations and economic policies, the Tanzanian Shilling is not the only currency in circulation.
US Dollars in Tanzania
While the Tanzanian Shilling is the primary currency, US dollars (USD) are widely accepted in the country. This is mainly because of Tanzania’s close trade ties with the United States and other countries that use the dollar. Many businesses, especially in the tourism sector, accept payments in US dollars alongside the Tanzanian Shilling.
Why Tanzania Uses Dollars
There are several reasons why Tanzania uses dollars alongside the shilling:
1. International Trade: Tanzania’s trade with countries that use the dollar makes it convenient for businesses to conduct transactions in US dollars. This simplifies cross-border trade and reduces currency exchange risks.
2. Tourism: Tanzania is a popular tourist destination, particularly for its wildlife and beaches. Many tourists bring US dollars with them, making it convenient for local businesses to accept this currency.
3. Inflation: The Tanzanian Shilling has experienced periods of high inflation in the past. This has led to some businesses and individuals preferring to hold US dollars as a more stable store of value.
4. Legal Tender: Although the Tanzanian Shilling is the official currency, the US dollar is recognized as legal tender in the country. This means that both currencies can be used for transactions, although the shilling is the primary currency.
Conclusion
In conclusion, while Tanzania’s official currency is the Tanzanian Shilling, the US dollar is widely used and accepted in the country. This dual currency system is a result of Tanzania’s trade relations, tourism industry, and economic policies. As a traveler or businessperson in Tanzania, it is essential to be aware of both currencies and understand their respective roles in the country’s economy.
