Sesame, Tobacco Inflow Stabilises Shilling

THE Tanzania shilling almost maintained its position in the last two weeks, thanks to the

inflows from sesame and tobacco.

The shilling, according to the central bank (BoT), appreciated by ten cents to 2,308/86 yesterday from 2,300/96 at the beginning of the month.

NMB Bank, one of the largest lenders in the land, said sesame and tobacco boosted the market but projected the shilling to strengthen further once cotton inflows start to flow.

"We expect cotton inflows to be observed in the market soon [as the season starts this month].

"This will boost the US dollar supply and hence cater for the daily demand from corporates and retailers," NMB said in its daily e-market report.

Orbit Securities said until last Thursday the shilling marginally gained 6 pips week on week to a weighted average exchange rate of 2,309/03 per US dollar.

"The amount traded on the Interbank Foreign Exchange Market (IFEM) went down by 11 per cent to a total of 6.94million US dollars for the three days during the week.

"The amount is lesser compared to the previous week due to fewer trading sessions during the week under review as a result of the Sabasaba Holiday," Orbit said.

Last week, traders projected that Kenya shilling will come under pressure over this week, while Tanzania's will likely hold firm.

Uganda's shilling was seen strengthening, Zambia's kwacha holding ground and Nigeria's naira weakening.