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Tanzanian Shilling’s 8.9% YTD Drop Earns It World’s Worst-Performing Currency Status

The Tanzanian shilling has experienced a significant decline, becoming the world’s worst-performing currency this year, dropping 8.9%. At the time of writing, the currency’s exchange rate against the U.S. dollar stood at 2,645 per dollar, a level last seen in late November 2024. This decline is attributed to rising imports and increased public debt, largely due to major infrastructure projects like a new port, oil pipeline, and LNG facility. Despite a projected 6% GDP growth, the currency faces short-term pressures from a widening current-account deficit and liquidity constraints. While these infrastructure investments are expected to yield long-term economic benefits, they are currently contributing to increased imports and debt, putting further strain on the shilling.

Tanzanian Shilling’s 8.9% YTD Drop Earns It World’s Worst-Performing Currency Status

The Tanzanian shilling has experienced a significant decline, becoming the world’s worst-performing currency this year, dropping 8.9%. At the time of writing, the currency’s exchange rate against the U.S. dollar stood at 2,645 per dollar, a level last seen in late November 2024. This decline is attributed to rising imports and increased public debt, largely due to major infrastructure projects like a new port, oil pipeline, and LNG facility. Despite a projected 6% GDP growth, the currency faces short-term pressures from a widening current-account deficit and liquidity constraints. While these infrastructure investments are expected to yield long-term economic benefits, they are currently contributing to increased imports and debt, putting further strain on the shilling.

https://news.bitcoin.com/tanzanian-shillings-8-9-ytd-drop-earns-it-worlds-worst-performing-currency-status/