Tanzanian Shilling

Overview

The Shilling is the official currency of Tanzania, although the use of US Dollars is widely accepted. The Shilling is subdivided into 100 cents. The Tanzanian Shilling replaced the East African Shilling at par in 1966.

Economy

• Tanzania has embarked on a major restructuring of state-owned enterprises. The program has so far divested 335 out of some 425 parastatal entities.
• Overall real economic growth has averaged about 4% a year, much better than in the previous 20 years, but not enough to improve the lives of average Tanzanians. The economy is heavily dependent on aid.
• Tanzania has an external debt of $7.9 billion. The servicing of this debt absorbs about 40% of total government expenditures.
• Tanzania has qualified for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) initiative. Debts worth over $6 billion were canceled following implementation of the Paris Club 7 Agreement.

History

• In 1966, coins were introduced in denominations of 5, 20, and 50 cents and 1 shilling. The 5-cent coin was struck in bronze, the 20-cent in nickel-brass, and the 50-cent and 1 shilling in cupro-nickel.
• Cupro-nickel 5-shilling coins were introduced in 1972, followed by scalloped, nickel-brass 10-cent coins in 1977. This First Series coins set, in circulation from 1966 to 1984, was designed by Christopher Ironside OBE.
• In 1987, nickel-clad steel replaced cupro-nickel in the 50-cent and 1-shilling coins, and cupro-nickel 5- and 10-shilling coins were introduced; the 5-shilling was octagonal.
• In 1990, nickel-clad-steel 5, 10, and 20 shilling coins were introduced, followed by brass 100-shilling coins in 1994, 50-shilling coins in 1996, and 200- shilling coins in 1998. The coins presently in circulation are the 50, 100, and 200 shillings.