ECONOMIC MADE SIMPLE: Economic perspectives on weakening Tanzanian shilling

The coming to office of President John Magufuli has been marked and characterised by a number of new things. These include some surprises and shockers. Indeed, surprises seem to be his way of doing things.

>The Tanzanian shilling has been declining and losing value in relation to major and vehicle global currencies such as the US dollar in the recent past. We have observed exchange rates of over $1 to Sh1,750. In not so a distant past, foreign exchange markets would sell the greenback at a price (exchange rate) of about Sh1,200 to Sh1,500 per $1 having risen from figures below Sh1,000 per greenback.

>The month of September 2014 will go down in history as the month in which the draft proposed Constitution of the United Republic of Tanzania was released. Needless to say, the new Constitution-making process has been full of controversies as has been some of its contents.

>The first few months of every year are busy months for those engaged in budgeting in various ministries, departments and agencies (MDAs) in Tanzania. This is not an exception in 2015.

>President Jakaya Kikwete’s October 2014 visit to Asia and China in particular involved, among other things, the signing of a number of multi-million dollar business deals, including those in transport infrastructure and real estate. This happened about one and a half years after the March 2013 visit to Tanzania by Chinese President Xi Jinping.

Among the biggest challenges that face the world today include unemployment and underemployment. 

>The 16th ordinary meeting of the heads of states of the East African Community (EAC) was held on the 20th February 2015 in Nairobi Kenya. These Presidents of Tanzania, Kenya, Uganda, Rwanda and Burundi made a number of resolutions. Among them is the resolution to speed industrial development in the regional block through banning importation of second hand clothes and vehicles popularly known as mitumba in Kiswahili.

>Greece economy has been struggling for a while. Among other things, it was at the centre stage of the 2010 eurozone sovereign debt crisis and had to be bailed out by its fellow euro zone states. In 2015 in general and the week leading to June 31 in particular Greece had to settle its colossal debts. It defaulted and once again needed to be conditionally bailed out.

Since January 2015, Uganda's local currency has lost around a quarter of its value against the US dollar.