Month-end inflows lift shilling

The shilling continued to appreciate since the beginning of this week against the US dollar after flattening in the previous week, thanks to the end of month inflows.

The dollar, according to commercial banks, traded at between 1,621/- and 1,631/-, compared to Monday’s close of between 1,628/- and 1,638/- .

The CRDB Bank Treasury’s report on Financial Highlights said, “the shilling continued to appreciate against the US dollar on Tuesday as there was end of month inflows”. 

While the National microfinance Bank (NMB) said the local currency continued to trim down earlier losses against the greenback on the back of reduced corporate demand and month end inflows.

“As we approach month end, we expect a similar trend tomorrow (today) but any significant demand would reverse the shilling gains,” NMB said in its e-newsletter. 

Standard Chartered Bank said the shilling recovered some of the losses on Wednesday on the back of declining dollar demand and increased local currency need for salaries and taxation payment during this month-end period.

“We expect the shilling to further strengthen today with medium price volatility in the market,” the bank said on its Daily Market report. 

On other hand, the Bank of Tanzania (BoT) said for the past 14 months the exchange rate of the shilling against dollar remained stable in comparison with the depreciation for the previous year and in comparison with many currencies including those of our major trading partners.

“The annual (12 months) depreciation of the shilling against the US dollar at the end of last month was only 1 per cent,” the BoT Governor, Prof Benno Ndulu, told the ‘Daily News’ recently. 

The shilling depreciated by merely 1 per cent in the 12 months ending last month, the Kenyan shilling sank by 4.6 per cent and the Ugandan shilling by 11.7 per cent.
Source: The Daily News, www.thedailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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