Shilling holds firmly against US dollar

Tanzanian shilling continued to hold steady against the dollar on Monday for the past one week in a row, partly due to liquidity squeeze as overnight rates head north. 

The market closed at 1592/1598 same as Friday’s close, according to National Microfinance Bank (NMB).

Standard Chartered Bank said the shilling traded with little to no volatility against the U.S. dollar on Friday on the back of well matched demand and supply in the interbank market. 

“Today (Monday) we expect a similar trend with low level of volatility,” Standard Chartered Bank said.

Meanwhile, the cash market recorded a decline on rates after a sustained rates rise over the week. The highest traded rate recorded an increase to 20 per cent  from 18 per cent with volume reported at 14.3bn/-.

“There is a liquidity tightening especially with few small banks which has seen a gradual increase in overnight rates,” the bank said.
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