Shilling gain pushed by agriculture inflows

The shilling has slightly gained against the dollar following steady foreign exchange inflows from export of agricultural products.

The export of mainly traditional products has led to an increased supply of the dollar hence pushing the greenback demand on a moderate and declining mode to let the shilling appreciate by 0.25 per cent to close at 1610/1630.

The Nat ional Microfinance Bank (NMB) said that since the beginning of the week the pair has been cooling off steadily despite the strengthening of the greenback globally.

“The shilling edged high against US dollar on Wednesday’s session buoyed by steady agriculture inflows, moderate demand and tight liquidity stance,” NMB said in its e-Market report. 

The bank report that the market closed at 1610/1630 against the dollar, despite the greenback “hovered near a three-year high against a basket of currencies” globally.

Standard Chartered Bank said the shilling continued its recent bout against the dollar yesterday as demand for the dollar decline in the market.

“We anticipate the trend to continue into today on the back of increased shilling flow from the agriculture and mining sectors, the bank said in its daily market report “low to medium price volatility anticipated in the market today”.

Tanzania Securities, a stock brokerage firm, daily market report showed that the shilling gained ground against the dollar to trade at a range of between 1,581/- and 1,661/-. “…(while) the Bank of Tanzania indicative rate for the pair ranges between 1,600/- and 1,616/- ,” Tanzania Securities said.

The brokerage form report shows that the shilling has lost ground by 0.63 per cent since the beginning of this year from 1,610/91 to 1,621/00. 

Another bank, CRDB, said the local currency continued to appreciate against the greenback, which was the result of inflows of dollar in the market from the agricultural sector and slow down of business activities.

“At close of local interbank foreign exchange market, commercial banks quoted the local unit at 1617/1627 against the dollar, which was lower than Tuesday’s close of 1618/1628,” CRDB said.
Source: The Daily News, reported from Dar es Salaam, Tanzania
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.