The National Microfinance Bank (NMB) e-market report suggests that the
shilling is likely to remain stable because of a shrunk demand from the
corporate sector.
"The stabilisation is attributed to some support from dollar
inflows from agricultural sector," NMB said in daily e-Market report,
quoting the shilling trading at 1,580/1,595 against the greenback.
Barclays Bank e-newsletter showed that shilling/US dollar continued to
trade in a tight range, with no significant strength from the shilling.
"The market today saw rather quiet activity with no significant
strengthening of the shilling," Barclays said. The bank quoted the
shilling closing the day at 1581/1603 range.
The bank also said other international currencies --especially the Euro
and Sterling Pounds -- continued high level of fluctuation but subdued at the
end of the market day to close at the same levels as opening.
The Bank of Tanzania (BoT) indicates that the shilling opened the month at 1577.61 but slipped to 1583.51 against the US dollar as of Tuesday.
The Bank of Tanzania (BoT) indicates that the shilling opened the month at 1577.61 but slipped to 1583.51 against the US dollar as of Tuesday.
Tanzania Securities said the shilling is expected steadfastly for the
reminder of the year because of recently downtick movement in the prices and
inflation.
"We are expecting Tanzania's current-account deficit to remain
above 10 per cent of GDP in both 2012 and 2013, which will mean that the
shilling will remain vulnerable to interruptions in aid and investment
inflows," the brokerage firm said in a study named 'Equity Research Local
Listed Banks'.
The research pegged its projection on the fact that historically the
local currency held up well compared with some of its emerging market peers.
But it warned that the shilling remains vulnerable to shifts in investor appetite due to Tanzania's high current-account deficit, which is likely to increase in tandem with the higher oil prices and higher dependence on unreliable and unpredictable farm based economy.
But it warned that the shilling remains vulnerable to shifts in investor appetite due to Tanzania's high current-account deficit, which is likely to increase in tandem with the higher oil prices and higher dependence on unreliable and unpredictable farm based economy.
"The current account deficit however," said the research,
"remains a weakness to the overall economic performance, leaving Tanzania
reliant on foreign aid and investment inflows".
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
0 comments :
Post a Comment