Shilling continues to remain almost stable against dollar

The shilling has continued to hold relatively well against the US dollar since last Friday, while low price volatility is expected as end of the month obligations approaches.

 

Data from commercial banks showed the shilling maintaining its stance after it appreciated slightly by 1/- to between 1,620/- and 1,630/- over Friday trading, amid thin trade from oil sector.

The National Microfinance Bank (NMB) said in a report that the shilling remained stable against the greenback "amidst thin trading as oil sector USD demand and inflows from NGOs and tourism remained limited".

"Further sideways trading is expected in the days ahead as these market conditions continue," NMB said when forecasting the future shilling/dollar trading. 

The Standard Chartered Bank seconded the NMB forecasting saying the shilling/dollar traded relatively flat as inflows matched outflows in both the corporate and interbank market.

"We expect a similar trend today (Tuesday) with low price volatility," Standard Chartered Bank said. Another bank, CDRB, said also in a report that the shilling slightly appreciated as there were fewer inflows in the market.

On other hand, the shilling depreciated by 1.008 per cent from 1,579/98 at the beginning of this year to 1,595/91 yesterday, showing the fluctuation rate was slight -- meaning the local currency remained relatively stable in almost three months.

Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam

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