Tanzania shilling slides 24 per cent in ten months

ABDUEL ELINAZA

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THE shilling has gone down by 24 per cent since the beginning of this year, as demand from importers continued to outpace foreign currencies inflow.

The Bank of Tanzania (BoT) data showed that the shilling depreciated from 1,723/25 in January to 2,142/65 in mid November. The shilling in the first week of this month, started to appreciate hence returning hopes to importers that the trend would continue.

CRDB Bank said at the beginning of this week that the shilling was expected to continue to appreciate against the dollar in the days ahead. The prediction follows a slowdown in demand from importers and an increase in supply from the agricultural sector, but backed up by “a relatively peaceful general election.”

The reports also show that slowed down inflows and continuing demand from importers for the greenback have resulted in a shortage of forex. “The shilling closed yesterday’s (Wednesday) trading session 5/- weaker than Tuesday’s close at 2130/2170.

On other hand another bank, National Microfinance Bank (NMB) said shilling remained stable against the greenback as the demand for dollar was well matched. “…The greenback inflows from agricultural sector and non-governmental organisations (matched with demand),” the bank said on it e-Market report.

For the other currencies, the shilling lost some 21 per cent since January to pound sterling from 2,686/11 to 3,259/07 of mid-week. The shilling tumbled to by slightly over 11 per cent to 2,286/73 against euro, while it also went down by almost 11 per cent to 20/96 versus Kenyan shilling.