Tanzania's central bank initiated the revocation of licenses for certain exchange bureaus in Dar es Salaam, citing illegal operations. This action followed the government's suspension of the English-language daily The Citizen for a week over an article detailing the shilling's decline, which relied on data from unregulated currency exchange offices.
The shilling had depreciated 0.34% against major currencies by early 2019, according to central bank data. The central bank described the decline as a seasonal fluctuation, noting that currency values typically stabilize by mid-year when tourism and export revenues increase. However, the depreciation has heightened concerns about Tanzania's $21 billion external debt burden.
The government's crackdown on media intensified after The Citizen published content on the economic situation. This comes amid broader restrictions on press freedom, including the closure of four publications since 2017. The Committee to Protect Journalists condemned the suspension, stating it reflects a broader effort to suppress public discourse on economic and democratic issues.
President John Magufuli's administration, elected in 2015, has faced criticism for curbing dissent despite praise for anti-corruption measures. Foreign direct investment dropped to 2% of GDP in 2017, down from 5% in 2014, according to the World Bank, as government interventions in mining and agriculture sectors deterred international investors.
