Tanzania's shilling gains on strong dollar inflows from exports

The shilling gained on the back of strong US dollars inflows from agro-exports when the public was celebrating Uhuru Day by cleaning their surroundings yesterday.

The shilling appreciation was also backed by moderate demand on the dollar, the main trading currency. The National Microfinance Bank (NMB), said on its e-Markets statement that the local currency gained on Tuesday against the dollar.

“The market closed up four shillings from yesterday’s (Monday) close,” NMB said. CRDB bank said on it’s Market Highlights that the shilling/dollar pair expected to match in overall demand and supply as the holidays season approaches.

“As we look towards to the holiday season…the local currency is expected to remain relatively stable against the greenback in the days ahead,” CRDB bank said. The shilling closed yesterday’s session around the levels of 2,135/2,175 against the dollar.

The Bank of Tanzania (BoT), data showed that the shilling depreciated from 1,723/- in January to 2,175/- of Tuesday but hopes are lingering since the coming to power of President, John Magufuli a month ago.

The shilling has gone down by some 20 per cent since the beginning of this year, as demand from importers continued to outpace foreign currencies inflow. The shilling appreciation came at a time the inflation in November gone up by 0.3 percentage point to 6.6 per cent pushed by raising food prices.

Meanwhile, gold rose on Tuesday as the dollar receded slightly and European shares fell, though expectations that the U.S. Federal Reserve will raise interest rates next week kept the upside in check.

A slide in commodity prices—particularly crude oil’s drop to its lowest in almost seven years as OPEC continues to pump near-record oil to defend market share—also prevented gold from reaching higher levels.
Source: Daily News, reported from Dar es Salaam, Tanzania
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