However, market analysts said, the
shilling gain was expected to hold temporarily following the demand from
the energy sector to remain high while supplies are limited.
NMB said
the 3/- gain against the greenback during Tuesday's session, was
supported by inflows from NGOs while the demand, especially from energy
sector remains strong.
The local currency is set to enjoy only
limited gains as US dollar demand from the energy sector remains high,"
NMB said on its e-Newsletter.
Another bank, Standard Chartered, said the
pair shilling/dollar saw no much movement on Tuesday as inflows were
relatively sufficient to cover market demand.
"We expect the pair to trade at similar
levels today on the back of balanced inflows with medium price
volatility," the bank said.
The shilling, on other hand, opened the week
firmly on Monday before it appreciated the following day though it has
slipped almost 5.0 per cent to 1,638/- in comparison to the amount
traded last January.
The depreciation of shilling has a far
reaching impact on imported goods and services.
The second-hand car
dealers have already expressed their grievance on the negative impact on
their businesses, because vehicle are now expensive almost 30 per cent
compared to last January prices.
They said the business "was very tight"
as sales volumes have dropped between 40 and 60 per cent in the last two
to three months. Last January dealers sold an average of 10 cars
compared to four last month.
Yesterday, the Energy, Water and Utilities
Regulatory Authority (EWURA) announced a slight increase of petrol price
by 12/- a litre or 0.59 per cent to 2005/- in Dar and Serengeti
2,228/-.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
0 comments :
Post a Comment