Tanazania: Shilling gains after president's swearing-in

The shilling continued to appreciate since the beginning of this month backed by various variables, but mainly traders' confidence as the president-elect was sworn-in.

The shilling started walking on the bullish mode as the nation was inching to the beginning of the new fifth phase government.

The fanfare experienced at the climax of the swearingin ceremony held at the Uhuru Stadium which was also attended by eight heads of state.

The National Microfinance Bank (NMB) said the shilling continued to gain on Wednesday backed by agricultural inflows and subdued demand from importers.

"The shilling gains - ahead of the announced public holiday tomorrow (yesterday) as the president-elect Dr John Magufuli is (was) sworn-in," NMB said in e-Market statement.

NMB quoted the shilling closing the Wednesday session at 2105/2180 a dollar while CRDB Bank trading board showed 2150/2190 against the greenback.

Another bank, CRDB, said the end month corporate obligations, including taxpaying, helped the shilling to appreciate. "End of the month inflows caused the local currency to make some gains against the greenback during yesterday's (Wednesday) trading session," CRDB Bank said.

The month end obligations saved the shilling from a four-month drop mid-last month that saw the shilling sunk to 2,148/2,208 a dollar.

Recently, the International Monetary Fund (IMF) reported that the shilling was close to find its 'equilibrium' point after too strong a level last year.

The shilling, which was assessed to be somewhat overvalued in 2014, is now closer to equilibrium," the Washington-based lender said.

The shilling's gains comes at a time when the dollar inched towards two and half month highs against a basket of currencies on Wednesday, buoyed by returning expectations of a rise in US rates and better growth globally, which has prodded yields on US government bonds higher this week.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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