Money money money... USD, EUR and the mysterious TZS

So, you're heading to Zanzibar and wondering how to get your hands on some Tanzanian Shillings (TZS)? First things first: you can't get TZS outside of Tanzania and Zanzibar. So, don't bother hitting up your local bank before you travel. They'll probably look at you like you're asking for unicorn tears.

Now, where do you get these precious notes? ATMs are your friend. They're popping up all over the tourist areas these days, so finding one isn't the epic quest it used to be. There are even some conveniently located outside Terminals 2 and 3 at the airport. Grab some cash there for tips and small purchases, because many local shops and drivers don't accept cards.

The biggest ATM issue in Zanzibar? They can still run out of cash or break down even though this is more and more a thing of the past thankfully. A pro tip: find an ATM at an actual bank branch. Those are refilled more frequently and generally better maintained than ATMs in the boonies. (See my other article, "Searching for the ATMs," for more ATM wisdom).

Now, some fun facts about TZS: The exchange rate with currencies like EUR and USD is in the thousands. At the time of writing the original post, $1 USD is roughly 2,709 TZS (but this fluctuates faster than a Zanzibari sunset). So, when you withdraw cash for that excursion, you might suddenly feel like a millionaire! Just remember, the highest denomination is 10,000 TZS. So, if you need to pay for something pricey, be prepared to carry around a lot of bills.

Most restaurants and larger supermarkets accept credit cards, but they often charge a 3-5% fee. ATMs also have fees, in average around 15,000 TZS for a 400,000 TZS withdrawal (there are some without fees but bad exchange rate, and some with 10.000 TZS here and there). Earlier the maximum limit was 400k TZS per withdrawal but that has also increased, so more and more of them now allow up to 600,000 TZS and some even more). Being a cash millionaire is suddenly possible with just some clicks...

Check XE.com (https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=TZS) for the current exchange rate (remember, that's the mid-market rate, so you'll usually get a slightly less favorable one when you actually exchange).

Also tapping with your mobile phone using Apple Pay or Google Pay is becoming more and more available throughout the island as the banks and the bars, restaurants and hotels upgrade their equipment. But don’t skip having the classic psychical card with you just yet.

Can you pay in USD or other currencies? Yes. Should you? Generally, NO. Contrary to what some "experts" on social media might say, paying in USD almost always means you'll get a worse exchange rate. Especially avoid paying individuals in USD. Some might even ask for it (or smile a lot when offered), but that's because they're making extra money off you, not because they're being helpful.

You can pay many local guides and drivers through apps like WorldRemit and Western Union, so if that is your thing you can ask about that and they'll give you their details for that. But if it's a one time thing it's normally more of a hazzle than anything else to do that. But of course, you have won the lottery and found the perfect guide and driver for your 2 week stay, this could be a go to option if it means less ATM withdrawals.

What about those other mobile payment solutions, like Nala, Remitly, Revolut etc? Nope, not very common at all. You could find some that use them, but that's not something to plan to use frequently, if at all.

Remember, Zanzibar's economy runs on TZS. People need TZS to buy food and pay for services. You're not doing anyone a favor by using a foreign currency. We're not in Europe or the USA here. Paying in EUR is usually even worse for you, as many places treat 1 EUR as equal to 1 USD.

Many places list prices in USD, but they'll always give you the price in TZS when you ask for the bill. They've just based their pricing on the local currency. Also, because of the prevalence of counterfeit USD bills, notes older than 2013 are often hard to use. So, if you insist on using USD, at least make sure they're relatively recent.

Can you exchange USD or EUR for TZS on the island? Sure. You'll find money exchange offices in larger towns, but they'll take a cut. Some hotels and restaurants also offer this, but usually with a very unfavorable exchange rate. So instead of listening to the social media guru's that tells you to bring whatever currency you have, just leave it at home and have a cheaper vacation.

Bottom line? Just withdraw TZS from ATMs and use TZS when paying cash. It's the easiest and usually the cheapest way. If you use a credit card, always pay in the local currency to get the best exchange rate. (Even if the price is listed in USD, it's usually not a big deal).

And who knows? You might just feel like a millionaire during your trip!

Karibuni Zanzibar!