The United Republic of Tanzania includes Tanganyika and Zanzibar.
Hordes discovered on the island of Pemba Tanzania show that Islamic coins of the ‘Abbasid caliphs of Baghdad were imported in the ninth and tenth centuries. Locally made copper and silver coins were made during the eleventh century and have been found on Pemba and Zanzibar and in the city of Kilwa. Chinese coins and Egyptian gold coins have also been found.
German colonists began penetrating Tanzania in 1885. Germany obtained a lease over the coastal part of Tanganyika from the Sultan of Zanzibar on April 28, 1888. Zanzibar was ceded to Great Britain in 1890 in exchange for Heligoland. Tanganyika became the German protectorate of German East Africa in 1891. The British occupied Tanganyika in 1916 and received a League of Nations mandate over the territory on July 20, 1922. Tanganyika became a United Nations Trust territory in 1946. Tanganyika gained its independence on December 6, 1961, became the United Republic of Tanganyika and Zanzibar on April 27, 1964, and the United Republic of Tanzania on October 29, 1964.
The Portuguese arrived in Zanzibar in the 1400s, but by 1650, their influence had waned and the Omani Arabs conquered Zanzibar in 1698. Zanzibar separated from Oman on April 6, 1861 through British mediation. Zanzibar was proclaimed a British protectorate on November 7, 1890, and the coastal domains of Zanzibar and Pemba became part of the Kenya protectorate in 1895. The British protectorate over Zanzibar was terminated on December 10, 1963, the People’s Republic of Zanzibar was declared on January 12, 1964, and Zanzibar united with Tanganyika on April 27, 1964. The sultan of Zanzibar issued his own coins in 1882.
Trade with India in the 1800s led to the introduction of Indian Rupees in Tanganyika. The German East Africa Company received the authority to issue Rupie banknotes and coins (DOAR) in 1890, which were issued at par to the Indian Rupee. The Rupee was divided into 16 Annas or 64 Pesa until 1906 when the Rupee was made divisible into 100 Cents. Kenyan and Indian Rupees were used between 1916 and 1920. Indian coins circulated in Uganda until their importation was made illegal on July 31, 1920.
The East Africa Currency Board of Nairobi was established to provide a medium of exchange for British East Africa (Kenya, Tanzania and Uganda). The British East African Rupee (XEAR) replaced the German East African Rupee in 1918 at par with the German East Africa Rupie. On July 31, 1920, the Florin (XEAF) replaced the Rupee, equal to two British Pound Shillings or one Indian Rupee and divisible into 100 Cents. On June 8, 1921, the East Africa Shilling (XEAS), equal to half a East African Florin and one British Shilling Sterling, and also divisible into 100 Cents, replaced the East Africa Florin.
The East African Shilling continued to be used both before and after Tanganyika united with Zanzibar to create Tanzania. On September 14, 1967 Tanzania introduced the Tanzania Shilingi (TZS) at par with the East Africa Shilling, and divisible into 100 Senti. The Shilling is issued by the Benki Kuu Ya Tanzania (Bank of Tanzania). The notes of Kenya, Uganda and Tanzania could be exchange without restriction in the commercial banks of other countries until 1971 when Uganda suspended the convertibility of notes.
Portuguese money was used in Zanzibar until the Arabs expulsed the Portuguese in 1698. Zanzibar Ryals, equal to 2 Rupees, were issued in Zanzibar by the Arabs. Trade with India made the Indian Rupee the primary medium of exchange, and in 1908, after Zanzibar had been made a British protectorate, the Zanzibar Rupee, issued by the Zanzibar government and divisible into 100 Cents, was introduced. It traded at par with the Indian Rupee. The East African Shilling replaced the Rupee on January 1, 1936, and the Rupee ceased to be legal tender on April 6, 1936. The East African Shilling continued to be used both before and after Tanganyika united with Zanzibar to create Tanzania. On September 14, 1967 Tanzania introduced the Tanzania Shilingi (TZS) at par with the East Africa Shilling, and divisible into 100 Senti. |
