The Dar es Salaam’s money market analysts also projected
that the shilling could strengthen slightly after holding its position in the last
one week. According to traders, a US dollar was bought for between 1,617/- and
1,627/- in Tanzania at the end of last week compared to 1,617/- and 1,623/- a
week ago.
Standard Chartered Bank said the shilling was forecast to
hold steady against the dollar in the next coming days backed by agro-sector
inflows and easing demand.
“The shilling is forecast to hold steady in the
days ahead and could strengthen slightly, helped by inflows from the
agriculture sector and subdued greenback demand,” Standard Chartered Bank said
in a statement.
National Microfinance Bank (NMB) said the shilling remained
unchanged for the last two days that ended on Friday despite increasing demand
from energy sector.
“During the day, we saw a slight depreciation of the
currency due to increased dollar demand from energy and construction sector,”
NMB said adding “but the position corrected itself supported by agriculture
flows.”
Bank of Tanzania data shows that while Tanzania shilling
depreciated by 1 per cent in the 12 months ending January 2013, the Kenyan
shilling depreciated by 4.6 per cent and the Ugandan shilling by 11.7 per cent.
“There has been significant increase in the demand for the
dollar among non-typical users,” the BoT Governor, Prof Benno Ndulu, said last
month adding that the shilling was relatively still stable.
However, regional
wise, the Ugandan shilling, according to Standard Chartered Bank, was likely to
be range-bound over the next week though weakening was not ruled out due to
optimistic economic growth.
“But could potentially weaken as buoyant economic growth
fuels expectations of a surge in greenback demand,” the bank said. At the
weekly close commercial banks quoted the Ugandan currency at 2,595/2,605, from
last week’s close of 2,590/2,600.
The local currency is up 3.5 per cent against the dollar in
the year to date. Kenya’s shilling was expected to strengthen in coming
sessions lifted by foreign investors selling dollars to buy local stocks and
fixed income securities.
“The shilling has firmed 0.7 per cent to 84.70/90 in the
last three sessions after the Supreme Court upheld Uhuru Kenyatta’s March 4
presidential election win in a largely peaceful vote,” Standard Chartered said.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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