Shilling slightly gains ground

Business

 

Written by DAILY NEWS Reporter

THE shilling has gained marginally against the US dollar thanks to interbank demands and is expected to maintain its ground as corporate sector tries to meet important end of the month obligations.

The shilling normally temporary gains at the end of the month as corporates, among other issues, are looking for the local currency to settle tax payment.

Since donors withheld their budget support in the second half of last year, the shilling lost ground against the greenback significantly.

The shilling yesterday, according Tanzania Securities, gained by 0.49 per cent to 1777/13. But on year to date has lost by 3.13 per cent.

CRDB Bank said shilling gained some ground against the dollar during Tuesday’s session, closing at the levels of 1810/1820 compared to an open of 1835/1845.

“We expect this trend to continue as the corporate sector tries to meet its end of month obligations,” CRDB says on its Market Highlights report.

Another bank, however, says that the shilling appreciated slightly because importers are anticipating further gain because of heading toward end month period.

National Microfinance Bank (NMB) says the shilling extended gains against the dollar buoyed by importers holding on their demand expecting the local currency would appreciate further.

“Importers are holding their demand anticipating further gains as we head to the month end,” NMB says in its e-Market report. The bank quoted the shilling closing the market at 1785/1855 levels.

However, the shilling made some notable gains on Tuesday after appreciating against all major currencies.

The shilling gained by 0.41 per cent against pound sterling to close at 2734/11, by 0.52 per cent over Euro to end at 2,009/76 and by 0.56 per cent to Kenyan shilling to close at 19/42.