Shilling firms against US dollar

Inflow of US dollars from the Tourism sector and development organisations contributed greatly in bolstering the shilling this week trading between 1537/- and 1608/-.

Towards end of last week, the rate of US dollar against the shilling continued to remain flat as the market experienced a muted trading session on Friday.

"However, since Monday this week, the outlook is for the local currency to make marginal gains as US dollars inflows are seen to be increasing," stated the Standard Chartered Bank daily market commentary.

According to the bank, the increased flows from the corporate sector and declining demand for the US dollar as business slows down towards the festive period also played a vital role in strengthening the shilling. "Additional shilling strength is expected as the market conditions persist," stated the report.

The National Microfinance Bank (NMB) in its e-market report show that inflows from Non Government Organisations (NGOs), some exports and tourism activities added support to the local currency even as the US dollars demand from importers dwindled slightly.

"We expect the local unit to appreciate further in the coming weeks on the back of increased shilling demand from the corporate sector for tax and salaries purpose," stated the NMB report.
Source: The Daily News, www.dailynews.co.tz, reported by Sebastian Mrindoko in Dar es Salaam
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