In Tanzania, the currency used as a means of payment is called the Tanzanian shilling. One shilling contains 100 cents. The international letter designation consists of a code in the form of TZS. Currency is not in demand among stock speculators because of its instability.
Description
Few people know what currency is in Tanzania, since it does not play a big role in the global financial system. Today in the country in circulation are paper banknotes issued according to the model of 2003 and 2010. Their face value is from 500 to 10,000 shillings.
Coins made of metal are issued in denominations from 5 cents to 200 shillings. The watermark in the currency of Tanzania is displayed on all banknotes. On the money of the 2003 model, it is presented in the form of a giraffe's head, and on banknotes issued in 2010, Julius Nyerere and the face value are depicted.
Shilling watermark - in the currency of Tanzania in the form of a portrait of D. Nyerere is completely justified. This is the first president of sovereign Tanzania, as well as an active fighter for the country's independence in the 60s. The country honors his achievements and contribution to the formation of the state.
Currency history
The newly made sovereign state of Tanzania officially introduced the currency (shilling) in circulation on June 14, 1966. From this moment on the territory of the country, East African shillings, which were used in the British colonies in this region earlier, were no longer used.
Banknotes issued in 2003 began to be used in February of the same year, and money of the 2010 model was officially put into circulation in January 2011.
Coins
Initially, in 1966, metallic coins of 5, 20 and 50 cents, as well as 1 shilling, were introduced into circulation on the territory of the country. For the manufacture of copper-nickel alloy, bronze or nickel.
In 1972, a bill of 5 shillings was replaced with a coin of the same value. Since 1987, 50 cents and 1 shilling began to be made of steel. In 1994, 100 shillings of brass, then in 1996 50 shillings, and since 1998, 200 of the same material.
Banknotes
In 1966, the first paper notes in denominations of 5, 10, 20, 100 Tanzanian shillings were introduced. They replaced the retired colonial East African shillings. Then came some larger bills.
Currently, paper banknotes in nominal values of 500, 1000, 2000, 5000 and 10 000, which were issued in 2003 and 2010, are officially used as means of payment. Although banknotes issued on the model of 2003 are still used along with newer ones, they are gradually withdrawn from circulation.
Older money is no longer used as a means of payment, but can be exchanged at the bank at any time. The design of banknotes is quite typical for this region. They depict significant animals (lion, rhino and elephant) living in the territory of the state, people and objects of architecture.
The exchange rate of Tanzania to the ruble and other monetary units
According to the data at the end of July 2018, the shilling rate used in Tanzania against the Russian ruble is approximately 0.027 RUR. That is, for one ruble, you can get about 35 shillings. In addition, due to the constant jumps in the exchange rates of both currencies, this ratio is constantly changing.
When comparing shilling with the European currency, the exchange rate will be less than 0.0004 EUR. That is, for one euro you can get about 2700 Tanzanian currency units.
Almost the same situation will be if we compare the exchange rate of the Tanzanian currency to the US dollar. So, for one dollar you can get almost 2300 TZS. Accordingly, for one shilling they will give a little more than 0.0004 USD.
A similar situation when compared with the British pound, Australian or Canadian dollars.
In Tanzania, the currency exchange rate is extremely unstable and is constantly changing. In addition, it is one of the cheapest monetary units in the world. Such a low rate is associated with a very weak economic development of the country. The standard of living and the state of the economy are in poor condition.
Exchange operations
The easiest way to exchange in Tanzania is the currency of the United States and the European Union. This can be done at airports, major hotels and restaurants. There are also official exchange points. However, the exchange rate in official financial enterprises is not the most profitable. Therefore, many tourists exchange money with "street" money changers, which offer more favorable conditions.
But the enormous benefits from such an exchange should not be expected, since the difference in rates is not too great. However, this method is sometimes not only beneficial, but also more convenient to use. In Tanzania, currency can be exchanged far from everywhere. This is especially true for non-tourist cities, where the necessary exchanger may not be available at all.
Cashless payments
Tanzania is one of the poorest and most underdeveloped countries in the world, so there is no reason to rely on bank transfer. Most residents of the country do not even have a bank account, so the terminals for paying for purchases or card services are installed only in large restaurants, hotels, shopping centers.
Also, in tourist cities this issue is not so acute, but you still need to always have enough cash with you so as not to be in a difficult situation.
Thanks to the rapid development of the tourism sector, the state raises and develops its economy, and with it the number of places where you can pay for goods and services with a credit card is increasing.
Perhaps, to say that using mobile applications for contactless payment, such as Android Pay or Apple Pay, does not work at all. There are so few places where this can be done that they can literally be counted on the fingers.
ATM withdrawals
In resort or large cities you can find an ATM or bank branch, although in comparison with European countries there are catastrophically few. In addition, not every bank works with foreign currency. And if they work, then the commission for the operation will be quite high.
However, in the absence of an alternative, you can use this method. In this case, it is recommended to withdraw a large amount immediately, so as not to pay a commission once again. To reduce the fee, try to find an ATM of a foreign financial institution. They are usually located in large hotels, restaurants and airports of international importance. But there are quite a few of them in the country.
Therefore, it is better to prepare in advance for the fact that you will need a lot of cash, and exchange them while in your homeland. So you can save on commissions. However, specify in advance whether there are restrictions in the customs legislation of Tanzania on the currency, or rather its import, and what is its size.
Some features
Due to the unstable and low exchange rate of the national currency, the country uses American dollars almost on a par with it. Therefore, you can safely pay them. In hotels, large supermarkets, restaurants and shopping centers, the cost of goods is often indicated in dollars, so that it is easier for foreigners to understand what the real price is. However, this does not mean that in such places you can pay only in dollars. You can safely pay for your purchase with local money at the official rate.
Other banknotes (euros, pounds, rubles, etc.) are uninteresting to the local population, so taking them on a trip makes little sense. The same goes for credit cards, which will be of little use in this country.
They are not only practically pointless to take with them, but also dangerous. The country has a high level of fraud with plastic cards of banks. Anywhere you can be deceived and steal all the money from the card account. If you are not ready to take risks, then it is better to use a credit card only in trusted and reliable places.
It is also not recommended to carry a large amount of cash with you because of the high crime rate. Also, do not openly demonstrate the amount of money or go alone in the dark. Large resorts are considered relatively safe for foreigners.
Conclusion
Tanzania, although an underdeveloped country, but the tourism industry is experiencing a real "boom". Hundreds of thousands or even millions of tourists come here every year. Thanks to this, the tourist infrastructure is developing rapidly. New hotels, resort areas, shopping centers, well-groomed beaches, etc.
People come here not only for the sake of sandy beaches, the azure sea and the hot sun, but also to admire the beautiful nature of this region. In the savannahs of this country live lions, leopards, elephants, giraffes, rhinos, buffalos, hippos and many other exotic animals that a European person can only see in the zoo or on the TV screen. Here you can observe them firsthand.
Interest in Tanzania as a tourist country is growing every year. Moreover, many Russians also began to prefer this particular country when choosing a vacation destination. At such a pace, in 5-10 years it will turn into a real “Mecca” for foreign tourists and will be able to easily squeeze Egypt. All data (nature, climate, ocean, low cost, etc.) Tanzania has. The main thing is to use this resource correctly.
With the growth of tourist demand, interest in the national monetary unit of this East African state is rapidly growing.