Browsing: Tanzanian shilling

It is 1985, the US dollar is unbeatable, it is the reigning champion of the World’s heavy weight currencies. The beefed up greenback is knocking out all challengers, it has to be stopped, reasoned economists from the other major World economies.

And so, that year finance ministers from the US, Germany, Japan, France, and the UK all inked an agreement to devalue the dollar, even the US was in on the agreement, laughing to the bank of course.

The decision to ‘intervene’ became known as the Plaza Accord, a joint agreement amongst central banks all around the World (including the US) to tinker with currency markets in a bid to put the dollar in check.

• The US dollar up 17% and rising
• Federal Reserve monetary policy behind rising dollar
• Strong dollar weighs heavy on Africa’s debt servicing

So with the heavy weight dollar playing Muhammad Ali again, almost half a …