The shilling is expected to lose ground
further this week after oil importers entered the market decisively
while inflows are limited, money markets have warned.
A greenback at the opening of the week was bought at
1,627/- at commercial banks, the highest in the last 15 month since the
local currency depreciated to the historical low of 1,800/-.
Standard Chartered Bank said they
expected a similar trend with a view that the shilling would further
depreciate on the back of declining inflows. “Low to medium price
volatility is expected in the market today (yesterday),” Standard
Chartered said on its Daily market report.
Another bank, National Microfinance Bank
(NMB), said the shilling continued to weaken against the dollar during
last week’s session as oil importers finally entered the market
decisively. NMB said: “Indeed, further weakness is expected as more US
dollar demand from the oil and manufacturing sectors continue to pour
into the market”.
Tanzania Securities weekly market report
ending last Friday showed that the shilling on weekly average remained
flat against the greenback, trading at a range of between 1,575/- and
1,655/-.
According to the Bank of Tanzania (BoT)
Monthly Economic Review of January, a total of 94.1 million US dollars
was transacted in the interbank foreign exchange market (IFEM) in
December 2012, compared to 135.5 million US dollars transacted in
November 2012.
During the period, the shilling
appreciated slightly against the greenback trading at an average rate of
1,578/41 per dollar compared to 1,580/51 per dollar in November 2012.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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