Against the backdrop of Africa's currency battlefield, Tanzania's shilling is putting up a fight—but let's be honest, it's not exactly winning.
As of January 12, 2026, the USD/TZS rate sits stubbornly at 2,499.6400, meaning you need roughly 2,500 shillings to buy a single American dollar. That's not great.
Tanzania's shilling demands 2,500 units for one US dollar—a stubborn exchange rate that speaks louder than any official optimism.
Compare that to its regional neighbors and the picture gets messier. One Kenyan shilling fetches about 20-22 Tanzanian shillings.
Against the euro, you're looking at 2,500-2,700 TZS. The British pound? A brutal 2,800-3,000 TZS. The shilling isn't collapsing, but it's definitely not flexing either.
The technical indicators tell a story of cautious optimism mixed with reality checks. The current rate hovers above both the 50-day SMA at 2,441.93 TZS and the 200-day SMA at 2,475.81 TZS. That's supposed to be bullish.
The 14-day RSI sits at 57.76, firmly neutral. Multiple moving averages scream BUY, yet shorter-term signals like SMA 3 and EMA 3 contradict that with SELL warnings. Classic market confusion.
Forecasts predict the shilling will weaken further to 2,524.48 TZS per dollar by year's end, representing a 0.97% depreciation.
The projected 2026 range spans 2,464.27 to 2,704.04 TZS, with an average around 2,568.65 TZS. January alone could see a 3.49% change, jumping to 9.08% by July. Bullish sentiment registers at 43.33% green days—barely optimistic.
Recent performance hasn't helped the narrative. The shilling weakened 1.16% against the dollar over the past month.
Weekly fluctuations ranged from a high of 2,500.55 TZS to a low of 2,454.98 TZS. The worst single-day drop hit -1.070% on January 9, 2026.
Yet there's a silver lining buried in the data. Over twelve months, the TZS actually gained 6.04% against the USD. That's something.
Volatility measures a modest 0.78%, suggesting relative stability despite the depreciation trend. The shilling's trading characteristics in the forex market reflect limited liquidity compared to major African currencies, which contributes to its weaker competitive position.
The Bank of Tanzania lists the AED buying rate at 665.8882 TZS, reflecting broader currency management efforts. Understanding the exchange rate factors that influence African currencies helps contextualize Tanzania's position in the regional forex market. For Tanzanian residents looking to participate in currency markets, understanding the legal framework governing forex trading remains essential for navigating these fluctuations. Still, Tanzania's shilling lags behind Africa's strongest currencies—not collapsing, just slowly losing ground.
