Which institution is Tanzania’s central bank and sole issuer of the Tanzanian shilling?

The Bank of Tanzania is Tanzania’s central bank and sole issuer of the Tanzanian shilling.

The Bank of Tanzania was established in 1965, shortly after Tanganyika and Zanzibar united to form the United Republic of Tanzania in 1964. Its headquarters are in Dar es Salaam, although Dodoma is Tanzania’s official capital. The bank conducts monetary policy, regulates banks, manages foreign reserves, and supports the country’s payment system.

The Tanzanian shilling is divided into 100 senti. The bank’s currency mandate covers both banknotes and coins used throughout the union. Tanzania’s monetary arrangements therefore reflect the political union that created the modern country.

The Bank of Tanzania should not be confused with Tanzania Commercial Bank or other commercial lenders. A central bank does not compete for ordinary deposits in the same way as a retail bank; instead, it sets the framework within which banks operate. The institution also works with the government on public debt and financial-sector development.