Dar registers payment surplus

The overall balance of payments recorded a surplus of over 30 per cent thanks to foreign direct investment and official capital inflows.

Recent data shows that the overall balance of payments recorded a surplus of 540.2 million US dollars last November compared to a surplus of 405 million US dollars recorded during the same period in 2012.

The Bank of Tanzania (BoT) said the “development was partly due to the increase in official capital inflows, nonconcession borrowing and foreign direct investment (FDI)”.

The surplus pushes the gross official reserves to 4.53 billion US dollars as at the end of last November. 

“…(the amount) is sufficient to cover 4.4 months of projected imports of goods and services excluding those financed by foreign direct investment,” BoT said in the latest monthly economic report.

At the same time, the gross foreign assets of banks stood at 931.9 million US dollars. However, the current account recorded a deficit of 4.55 billion US dollars compared to a deficit of 3.71 billion US dollars reported in the year ending November 2012. 

“… (this was), mainly attributed to a fall in goods exports and official current transfers coupled with increase of imports,” BoT said.

The value of exports of goods and services declined to 8.47 billion US dollars in the year ending last November, from 8.60 billion US dollars of similar period in 2012.

“The decline was largely explained by a decrease in the value of goods exports particularly gold and traditional exports that went down by 16.9 per cent and 8.1 per cent, respectively,” BoT said.

On the other hand, the value of imports of goods and services increased to 13.58 billion US dollars last November compared to 13.01 billion US dollars similar period in 2012.

“Much of the increase originated from oil imports, which rose by about 23 per cent…on account of increase in volume associated with rising demand for thermo power generation,” BoT report indicated.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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