Tanzania Shilling steady against the US dollar
The Tanzania shilling began the week encountering some steadiness against the dollar; however it is going to be a short-lived circumstance prior to importers requiring that it gets up again.
In accordance with the National Microfinance Bank - NMB e-market report, the Tz Shilling continued to be stable against the US Dollar today, and the bids went up towards the end of the trading session, an indication showing that importers' demand could weigh in on the local shilling in the couple of days to come if identical conditions continue to exist. Liquidity within the local money markets slightly reduced, right after local payments at the close of the month of July.
The overnight rates exchanged at 15 % on average, with the likelihood of further reducing as liquidity returns to this market. And in accordance with Market Outlook of Standard Chartered Bank, the Tz shilling together with the US dollar bought and sold fairly flat at the start of the week on Monday while inflows matched up outflows within the corporate plus interbank market.
A similar trend was anticipated to continue a day ago with a minor bias on a more powerful dollar as demand begins to pick up within the market. The market-pulse by Exim Bank shows that the Tanzania shilling was flat against the US dollar at the close of last week and traders quoting USD/ TSH at 1652/1667 once the market opened and eventually closed.
The shilling is predicted to keep on trading on the very same levels in the couple of days to come. Barclays bank In its market report stated that the local currency encountered another stability a week ago as players on the market were fairly quiet and rather trading slowed up as the market was shut for 2 days because of the Eid holidays.
The Tz shilling demonstrated indication of strengthening at the end of the week as the US dollar inflows heightened. Dr Honest Ngowi a Senior Lecturer at Mzumbe University on Tuesday mentioned during an interview that for Tanzania’s value which is outwardly determined, it is not easy to keep its stability against other strong foreign currencies.
he went on to say that since Tanzania is a net importer, this will continue to make the Tz shilling bend below against the US dollar, except if rigorous efforts are set up to reduce unnecessary imports.
In addition, the senior lecturer said that in order to give an extensive stability to the Tz shilling, they ought to boost the volume as well as diversify exports so as to obtain markets with high quality prices. In the same way, he brought up the need to market international tourism to improve inflows into Tanzania.