Tanzania shilling loses on higher dollar demand

Strong demand for the US dollar from oil and manufacturing sectors has contributed to the depreciation of the shilling against the greenback.

The NMB e-market report states that “the local currency weakened on Tuesday closing four shillings below Monday’s close as demand from Oil and manufacturing floated the interbank market with little flows from sellers.”

At the end of the day, the market closed at 1834/1896 levels. According to the CRDB Bank Financial Markets Highlights the increasing pressure from demands by the oil and energy sector, the Tanzanian Shilling weakened against the Dollar by another 7 shillings during yesterday’s trading session.

The currency closed at the levels of 1864/1874 against the dollar, having opened at 1857/1867. 

The Bank of Tanzania (BoT) monthly economic review, shows the decline of import bill by 15.1 per cent to 3,656.8 million US dollars in the year ended January mainly due to a fall in volume and prices in the world market compared to 4,308.6 million US dollars in 2013; it has continued to dominate the country’s imports.

The interbank demands resulted in the continued depreciation of the Tanzanian Shilling against the Dollar at the beginning of the week.

Also the interbank money market volume was recorded at 36.2bn/- with the shilling exchanged at the levels of between 7.5 per cent and 5 per cent. In the local money markets, overnight interest rates traded slightly higher at about 7 per cent.
Source: Daily News, reported from Dar es Salaam, Tanzania
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