Tanzania's shilling gains in last ten days

The shilling has stabilised by almost 1.5 per cent against a US dollar in the first ten days of this month, backed by agricultural inflows and subdued demand.

The shilling, according to Bank of Tanzania, was quoted at 2,170/- at beginning of the month but closed trading at 2138/- for the greenback. 

The local currency appreciation at beginning of the month is the first in the last two months since September.

The shilling gained by some 90/- to 2010/- in August. The last two months trend shows that the shilling depreciated at the beginning of the month before gaining at the month-end.

In September the shilling went down to 2,167/- from 2,146 at the opening of the month while in October slid to 2,172/- from 2,160/- quoted at beginning of the month. 

National Microfinance Bank (NMB) said in e-Market report that shilling strengthened on Monday, amidst large dollar inflows from export proceeds and subdued demand.

“The shilling may strengthen slightly as these market forces remain, however importer interest at lower levels of the dollar/shilling pair is likely to cap the shilling rally,” NMB said.

Another bank, CRDB said end of month inflows and interbank activities caused the local currency to continue to make some gains against the dollar. 

The shilling closed the session trading around the levels of 2120/2160, about 15/- stronger against the greenback.

Latest BoT’s monthly economic review shows that transactions in the inter-bank foreign exchange market (IFEM) amounted to 190.4 million US dollars in August compared with 172.5 million US dollars.

The central bank participated in the market for liquidity management purposes by selling 26.2 million US dollars compared to 97.4 million US dollars sold in July.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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