Shilling firm on corporate demand

The shilling is expected to strengthen in the near term due to corporate demand on the local currency as they prepare for year-end obligations.

The obligations range from salaries, taxes, and end year gifts exchange seasons—in Christmas and New Year. 

However, the shilling weakened slightly after losing the battle from high demand it received from oil and manufacturing companies.

National Microfinance Bank said the shilling lost ground further last week to close at 1604/1624 with US dollar demand from “oil and manufacturing companies kicking in”.

“The shilling is however expected to strengthen in the near term due to corporate demand of the shilling as they prepare for yearend local obligations,” NMB said e-Markets report.

The Tanzania Securities figure shows that the shilling opens the month trading at 1606/- to close the last week at 1,610/- a greenback— going down by 4/-.

Another bank, Standard Chartered, at the end of the week however, held steady as demand for the shilling matched demand for the dollar.

“We anticipate the trend to continue with low to medium market volatility...,” Standard Chartered said on its Daily Report.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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