Exchange Rate Between Us Dollar And Tanzanian Shillings
Introduction
The exchange rate between US Dollar and Tanzanian Shillings is an important aspect for anyone who wishes to travel or trade in Tanzania. The exchange rate is the value of one currency in relation to another currency. The exchange rate between two currencies is determined by the market forces of demand and supply.
US Dollar
The US Dollar is the official currency of the United States of America. It is the most traded currency in the world and is widely accepted as a standard currency for international transactions. The US Dollar is denoted by the symbol $ or USD.
Tanzanian Shillings
The Tanzanian Shilling is the official currency of Tanzania. It is denoted by the symbol TSh or TZS. The Tanzanian Shilling is not a widely traded currency and is mostly used for local transactions in Tanzania.
Exchange Rate
The exchange rate between US Dollar and Tanzanian Shillings fluctuates depending on the market forces of demand and supply. As of August 2021, the exchange rate between US Dollar and Tanzanian Shillings is 2,316.50 Tanzanian Shillings for 1 US Dollar.
Factors Affecting Exchange Rate
Several factors affect the exchange rate between US Dollar and Tanzanian Shillings. Some of these factors are:
- Interest Rates - Higher interest rates in the US attract foreign investors to invest in US Dollars, thus increasing the demand for US Dollars and increasing its value compared to other currencies.
- Inflation - High inflation in a country would make its currency less valuable compared to other currencies, thus reducing the exchange rate.
- Political Stability - A country with political instability would have a lower exchange rate as it would not attract foreign investment.
- Trade Balance - A country with a trade surplus would have a higher exchange rate as it would attract foreign investment.
Exchange Rate History
The exchange rate between US Dollar and Tanzanian Shillings has fluctuated over the years. In 2016, the exchange rate was around 2,200 Tanzanian Shillings for 1 US Dollar. In 2017, the exchange rate increased to around 2,250 Tanzanian Shillings for 1 US Dollar. In 2018, the exchange rate increased further to around 2,300 Tanzanian Shillings for 1 US Dollar. In 2019, the exchange rate remained stable at around 2,300 Tanzanian Shillings for 1 US Dollar. In 2020, the exchange rate increased to around 2,400 Tanzanian Shillings for 1 US Dollar. As of August 2021, the exchange rate is around 2,316.50 Tanzanian Shillings for 1 US Dollar.
Conclusion
The exchange rate between US Dollar and Tanzanian Shillings is an important aspect for anyone who wishes to travel or trade in Tanzania. The exchange rate is determined by the market forces of demand and supply and is affected by several factors such as interest rates, inflation, political stability, and trade balance. It is important to keep track of the exchange rate when traveling or trading in Tanzania to ensure that you get a fair deal.