The shilling has firmed against the dollar helped by slowed commercial
demand for the greenback as corporate firms consolidates their end-month tax
obligations.
The shilling end-week slightly appreciation was on the back of current
monetary policy stance. The market closed at 1592/1597 levels, a 2/- gain from
Thursday's close of 1594/1599 levels, according to National Microfinance Bank
(NMB).
"The last trading session of the week left the local currency
edging high against the US dollar on reduced demand for the greenback from
corporate as we approach month end tax payments," NMB said on its e-market
daily report.
Standard Chartered Bank said the market experienced a quiet trading on
Friday to enable the shilling show some slight gains.
"As the corporate focus gradually shifts from dollar demand to
shilling demand for end of month Tax payments, the shilling is expected to hold
on to the gains of yesterday," Standard Chartered said.
The shilling gain is also associated with the cash interbank money market
which witnessed continued easing of liquidity with overnight rates at record
low.
Last Thursday, interbank rates eased slightly indicating increase in
liquidity which has seen the volume traded going down to 19.7bn/- from
25.2bn/-.
"We expect the interbank to remain below the 10 per cent levels as
we move towards the end of month," the bank said.
The Repo window remained at four per cent for the two week, with only
5bn/- offered and accepted. Since the beginning of this year the shilling has
been wobbling at between 1,580/- and 1,600/- level, the new benchmark,
according to analysts.
Source: tzexchange.blogspot.com
0 comments :
Post a Comment