The
shilling lost significant ground against the U.S. dollar on Tuesday to close
the market at 1,610/- but made a quick recovery yesterday thanks to Bank of
Tanzania support.
The
shilling, however, bounced back on its comfortable range around 1,500/- a
dollar yesterday, a level which it maintained since the beginning of this year
after the BoT smoothing the market.
National
Microfinance Bank’s Treasury Director Aziz Chacha told the ‘Daily News ‘that
the shilling made a quick recovery to regain losses that it incurred on
Tuesday.
”It
was a normal market panic which pushes the exchange rate up, (but) the shilling
as long gone to its range bound rate,” Mr Chacha said.
NMB
said in its e-market report in Tuesday that the trading session saw the
shilling losing strength against the US dollar on the back of demand for the
hard currency from importers with relatively low supply for the same.
Traders
were on opinion that the shilling might not maintained its current status as
corporate clients were on year-ender season holiday and once are back the
situation might change.
“Depending
on whether or not the Central Bank will be in the interbank selling dollars
today (Wednesday), the market might move in either direction,” Standard
Chartered bank said yesterday on its Daily market report.
Last
October, according to BoT latest Monthly Economic Research of last November, the
bank sold a total of 104 million US dollar compared to 93.6 million US dollar sold
in the preceding month.
“This
resulted to a mop up of 188.1bn/- from the economy,” BoT said in the report
issued yesterday. In October, the Bank accounted for 71.9 percent of the total sales
in the Inter Foreign Exchange Market.
Meanwhile,
value of export of goods and services was 6,733.8 million US dollar compared to
5,532.0 million US dollar recorded in the year ending October 2010.
This
development was largely on account of increase in the price of gold in the
world market; export unit prices and volume of cloves and tobacco; tourist
arrivals; and exports of various commodities including cement, textile
apparels, edible oil, plastic items, iron and steel products, wheat flour, and
paper and paper products to the neighbouring countries.
Source The Daily News--By Abduel Elinaza
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