Tanzanian Currency (TZS): Exchange Rates, Usage & Business Implications

The Tanzanian Shilling (TZS) sits at the center of all commercial activity in Tanzania and directly influences pricing, cost structures, investment returns, and financial planning. For businesses and investors, understanding how the currency functions in daily transactions, how inflation affects real value, and how foreign exchange risks are managed is essential to operating efficiently and protecting capital. This guide provides a practical, decision-oriented overview of the TZS within Tanzania’s broader economic and regulatory environment.

Current Use & Practical Overview

The Tanzanian Shilling (TZS) is Tanzania’s official currency and primary medium of exchange for all domestic transactions. Banknotes commonly in circulation range from 10,000 to 500 TZS, while coins typically range from 500 to 50 TZS.

Denominations & Security Features

TZS banknotes and coins incorporate security features such as watermarks, security threads, and raised printing to reduce counterfeiting. Higher denominations are predominantly used in wholesale trade, rent, and salary payments.

Daily Use & Inflation Impact

Currency usage directly affects pricing in markets, transport fares, utilities, and service contracts. Inflation trends influence purchasing power and cost structures, particularly for businesses reliant on imported inputs. Explore currency stability and FX trends

Currency Conversion & FX for Investors

Foreign exchange transactions commonly involve USD, EUR, and increasingly CNY. Conversion is conducted through licensed banks and forex bureaus, with rates influenced by monetary policy and external trade balances.

FX Volatility & Hedging Tips

Businesses exposed to foreign currencies often mitigate FX risk through pricing strategies, currency matching, or short settlement cycles. Understanding macroeconomic drivers helps reduce currency-related uncertainty. Practical tips for managing TZS in business and See how the economy affects TZS value