Tuesday, September 8, 2020

Tanzania: High Demand, Price Increase Gold Earnings

PichaTHE value of gold export increased to $266.8m in July compared to $129.4m in the corresponding month in 2019, owing to a rise in global price and demand due to weakening of financial asset prices.

The Bank of Tanzania (BoT) monthly economic review for August shows that gold export accounted for 56 per cent of non-traditional exports growing by 52.8 per cent to $2,728.7m on account of volume and price effects in the world market
During the reference period, non-traditional goods exports improved to $4,869.9m in the year ending July from $3,680.5m in the corresponding period last year, mostly driven by minerals particularly gold and horticultural products.
The outstanding performance of the traditional and non-traditional exports made the external sector development continue improving, reflecting the diminishing impact of the coronavirus pandemic on the global supply chain.
For example, during the year ending July, the balance of payments improved to a surplus of $149.6m in the year ending this July, from a deficit of $643.8m in the year ending July 2019.
The current account deficit narrowed to $602.3m from a deficit of $1,902.7m on account of higher value of goods exports, coupled with a decrease in import bills.
Meanwhile, foreign assets of banks amounted to $1,085.3m at the end of July, higher than $1,053.9m at the end of July last year.
The value of exports of goods and services increased to $9,815.3m in the year ending July this year from $8,706.6m in the corresponding period in 2019, owing to rise in exports of goods.
On monthly basis, the exports of goods and services amounted to $752.2m in July this year, higher than $557.9m in July last year, driven by exports of goods.
The exports of traditional goods namely cotton, sisal, cashew nuts, coffee, tea, tobacco and cloves doubled to $1,016.5m in the year ending July from $503.3m in the corresponding period in 2019. The increase manifested in exports of cashew nuts, cotton, cloves and sisal.
The increase in the value of sisal export was on account of both volume and price in the world market. Export values of cashew nuts, cotton and cloves rose due to improved export volume on account of production increase.
By contrast, export values for coffee and tea declined on account of low export volume and prices in the world market.

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