Shillings and dollars

A few random thoughts on life as it relates to money here in Tanzania:

We were surprised when we arrived how many places you could use the U.S. dollar.  Even more surprising was how many places only accept U.S. dollars.  It was the preferred currency for our Tanzanian visa at the airport, our resident visa application here in Moshi, and tips at hotels & on safari.  We paid for several hotels and all of our room and board & program fees in American cash.

However, the banks, and therefore the merchants, are fairly particular about only taking "new" American money.  The preferred date fluctuates but is usually sometime after the early 2000's.  They will accept both old and new hundred-dollar bills, but not my lone 1999 bill which I will apparently be packing back home with me. 

Many restaurants and stores will also accept dollars even if the shilling is preferred, however if you know the current exchange rate (about 1600-1650 shillings per dollar, depending on the bank) you'll note that such stores are only giving a rate of about 1500 shillings per dollar.  And unlike other countries I've been where U.S. dollars are commonly used, on more than one occasion I've paid in shillings and received my change in dollars.

Which brings me to my next thought: change.  There seems to be a severe and country-wide shortage of bills in the amount of 500, 1000, 2000, and 5000 shillings.  I've lost count of how many times I've been told "you need to pay with something smaller."  Which means I'm forever running out of small bills and having to put things back or add to my purchase to total something closer to 10,000 shillings.  Coming from the good ol' U.S.A. where merchants actually buy change from banks to be able to complete transactions, this can be more than a bit exasperating.  We try to get in line in order so that if the first person pays in small bills the second person can get that change back.  It's possible that the same dozen small bills are just being passed around the international housing here at KCMC.

Also, I find it interesting that I've never seen a note larger than 10,000 shillings (approximately $6.25).  Which means a relatively small amount of money can make a rather impressive pile of shillings. Now that is a fact of life here I do enjoy.

I won't be sad to give up my hoarding of small notes and go back to my trusty debit card!  And spend that "aging" 100 dollar bill.  But I will miss the colorful money!

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