The money market analysts have predicted the declining of interbank
rates in this month on the back of large maturities from Treasury Bills
(T-Bills).
T-Bills are one year instrument that are used to control excess money
circulation in the market and keep inflation low.
The market, according to Standard Chartered
Bank, remained well funded at the closing of the week with tax outflows causing
no pressure on the interbank funding, with analysts predicting declining in
rates.
“We expect a further decline in interbank rates in June on the back of
expected large maturities from T-bills,” the banks said in its Daily Market
report issued on Friday.
At the close of
the week last Friday, the rate climbed slightly to 13.02 per cent from 11.94
per cent traded a day before, according to the StanChart market report.
However, the highest offer seen was at 15 per cent while the lowest
remained at five per cent. Last
Thursday, the highest interbank offer rate declined to 17 per cent from 18 per
cent while the lowest offer remained at five per cent.
StanChart, however, was upbeat the rate would climb down further as the
cash market remains liquid as “we move towards end of the month where large
outflows for tax settlement are expected.”
National Microfinance Bank’s (NMB) e-market report indicates that in the
local Money Market, liquidity remained tight, with large corporate demanding
shillings to make local payments.
“The local currency continued to trade at the 15 per cent level,” NMB
said. Meanwhile, for a fifth
consecutive day the shilling remained flat and stable on trading.
The interbank
and corporate fronts continue to see well balanced matching of flows. “We expect the shilling to remain below the
1,600/- mark,” Standard Chartered said.
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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