The article discusses how aid inflows can affect Tanzania's exchange rate. It shows that when aid money increases, the country's currency tends to lose value. This is because more aid can lead to changes in the economy that make exports less competitive. The study looked at data from the past few decades and found that the exchange rate is also influenced by changes in trade policies and shifts in global trade. Overall, the findings suggest that aid inflows can impact Tanzania's exchange rate, with the Bank of Tanzania's actions playing a key role in this relationship.