The shilling has tumbled by nearly 200/-
to 2,195/- and returned to six-week lows over the week as demand from
importers outweighed agro and institutional dollar inflows.
The shilling started to fall last
Thursday after demand swelled to close the week at 2,080/- buying and
2,195/- selling levels, sending a diminishing signal of local currency
appreciation.
The National Microfinance Bank (NMB)
said shilling slightly fell last Friday on a volatile trading session
with demand from importers outweighing agro and institutional dollar
inflows.
“The shilling trades slightly weak
against the dollar as we head for the weekend,” NMB said on e-Market
statement over the weekend, quoting the dollar at 2080/2195 levels.
The Interbank Foreign Exchange Market
(IFEM) data shows that amount traded increased between June 26 and July
1, ranging from 20 million US dollars and 30 million US dollars.
However, amount traded last Friday was
9.7 million US dollars hence failed to cushion the demand for greenback.
CRDB bank said the shilling lost most of the strength it had gained
against the dollar at the start of the (last) week during (Thursday)
trading session.
“(As the) result of continuing high
customer demands for the dollarÉ pushed the local currency to close the
session at the levels of 2070/2170 to the dollar”, CRDB said.
Early last week, the shilling made a
quick reverse to recover by nearly 200/- to close the market at 2,100/-
against US dollars as corporate month end obligation and improved agro
inflows.
The shilling, according to market
players, also makes the quick gain following improving greenback inflows
in the interbank foreign exchange market to retain its trading level in
almost four weeks ago.
The shilling depreciated by almost 20
per cent in the first five months of this year, following high demand
amid low supply of foreign currency especially the dollar.
While on year-to-year basis ending June
8, 2015, according to BoT, the shilling depreciated by 25 per cent based
on the data from Interbank Foreign Exchange Market.
To stabilise the shilling BoT pumped some 410 million US dollars in the first five months of this year.
Source: Daily News, reported from Dar es Salaam, Tanzania
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