Shilling firms as 2014 approaches

The shilling firmed by 3/- against the dollar, as corporates converted US dollars to settle year-end obligations.

The shilling strengthened to reach 1,585/1,595 at the close of the week, while other importers remained on the sidelines waiting for the dollars/ shilling pair to fall further.

National Microfinance Bank (NMB) said the shilling was expected to gain further despite the fact that the market players are anticipating reversal while others want to toughen.

“Further strengthening of the shilling is likely, although market participants are watching critical levels below 1,585/1,595 for a likely reversal,” NMB said in e-Market report.

The bank further said on Thursday the greenback inflows as shilling build up for tax payments and tight liquidity stance”also buoy the shilling as we approach Holidays this week.”

Another bank, Standard Chartered, said the shilling further strengthened against the US dollar as demand for the local currency increased as expected in the market.

“More shilling appreciation is again foreseen this week with low to medium price volatility in market,” StanChart said in market Daily Report.

The bank said mid-week that shilling gain was attributed to the importers who pulled out their demands anticipating further decline, while inflows from agriculture boosted further gain.

“The local currency continued to shine against US dollars on Wednesday trade buoyed by inflows from agriculture and NGOs conversions,” StanChart said.

The shilling, according to the bank continued its recent gains against the greenback on the back of increased local currency demand as we approach month end.
Source: 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.