THE shilling is expected to gain from foreign currency inflows from tourism and exports of cash crops which will subdue pressure on the local currency.
According to TIB market updates, the
Monday’s trading session saw the USD subdue its pressure against the
local currency compared to previous sessions. “The pressure on the
USD/TZS pair is expected to further subdue due to the incoming cotton
and tourism seasons that will aid in foreign inflows,” stated the TIB
report.
The USD/TZS pair ended the session at
2265/2290. Demand and supply mismatch continues to exist but drop in
demand in the foreign currency has managed to lower trading levels,
somewhat slightly. Importers and manufacturers continue to hold their
positions hoping for a further appreciation of the local demand.
The CRDB Financial Highlights on its
part show that the local currency traded gained slightly on Monday due
to slight diminish of importers demand and central bank support in the
market trying to curb the pressure on the shilling.
The same trend is expected in few days to come supported by agricultural inflows.
The local money market is of healthy liquidity with rates in all of its instruments trending downwards.
NMB Bank said in its e-market report
that the local currency edged slightly higher than Monday against the
dollar buoyed mainly by positive sentiments from importers that dollar
flows from sesame and tobacco could strengthen the shilling in the days
ahead.
However, demand remains, which can reverse the trend in the days to come should the inflows not match.
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