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Tanzania Shilling sinks to four months low‏

Tanzania Shilling sinks to four months low‏
THE shilling has sunk to four months low last week following heavy demand of US dollars from energy and manufacturing sectors.

The shilling crossed that level in this May.

The national microfinance bank said the market closed last Friday around 2,148/2,208 levels following mounting pressure from importers.

“Continued dollar demand from retailers and manufactures weighed on the local currency (Friday’s) volatile trading session” NMB said in e-Market report.

Another bank has it that the shilling was still under pressure from heavy demands from the energy and manufacturing sectors for the dollar.

“The local currency closed last week another 4 shillings weaker at the levels of 2179/2199 against the greenback,” CRDB bank said.

While Tanzania shilling nose dived deeper, its counterpart was unchanged last Friday, with traders expecting it to trade in tight range through the session.

At 0715 GMT, commercial banks posted the shilling at 103.00/10 to the dollar, unchanged from Thursday’s close.

“There has been no change overnight, it’s a dead market,” said a trader at one Nairobi-based commercial bank. “We expect trading between 103/- and 103/20 all day.”

He added the Kenya shilling, down about 14 per cent against the dollar this year, was unlikely to strengthen much as some companies had orders to buy dollars as soon as the local currency dipped below the 103/- level.

Both shillings may have been affected negatively after the dollar pulled away from seven-week lows on Friday, after better-than expected US inflation data kept alive bets the Federal Reserve would raise interest rates this year, and as expectations grew for more euro zone easing.

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Posted by on October 20, 2015 in Business News, Finance, Tanzania News

 

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Shilling Posts Modest Gain‏

THE shilling made a quick last-minute u-turn seen as the start of a new strengthening trend as the market approaches end of the month.

The shilling has the trend of appreciating at the end of the month when its demand swells due to corporates’ end of the month monetary obligations

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The local currency, according to CRDB Bank market highlight report, closed the weekend session stronger against the US dollar at 2,145/2,185 levels.

On Monday last week, the shilling was trading at 2,159/2,199 against the greenback.

The bank said the shilling made a fast last-minute turnaround at the end of yesterday’s trading session, with significant appreciation.

“This seems to be the start of a new strengthening trend as we head towards the end of the month,” CRDB said.

Another bank, National Microfinance Bank (NMB) eMarket report shows that the shilling rose significantly mid last week backed by improved greenback inflows in the interbank foreign exchange market.

“Further,” the eMarket said, strengthening is likely if the inflows will endure towards month/quarter end”.

However, since the beginning of this month the shilling lost by some 25/- against the US dollar close the yesterday inter bank forex market at 2,170/-.

In July, the Bank of Tanzania participated in the market for liquidity management, selling 197.4 million US dollars compared with 117.8 million US dollars sold in the preceding month.

On the world market the US dollar dropped against most major currencies mid last week as investors were awaiting the closely-watched Federal Reserve’s meeting statement due Thursday.

The euro rose to 1.1287 dollars from 1.1278 dollars in the previous session, in New York while sterling hit a three-week high against the dollar on Thursday after data showed British retail sales edged up in August, with investors focusing on the possibility of the first U.S. interest rate rise in almost a decade.

 
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Posted by on September 22, 2015 in Business News, Tanzania News

 

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Corporate demand pushes down shilling‏

 INCREASED pressure due to corporate demand has continued to weaken the shilling and on Monday it depreciated against the US dollar to close at levels of 2145/2185.

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“We anticipate high demands from the energy, manufacturing and retail sectors, this might possibly be the continued short term trend,” stated the CRDB Financial and Market Highlights report.

The local currency ended last week with small gains against the dollar on Friday, closing 5 shillings stronger at the levels of 2140/2180 against the Dollar. But on Monday it lost the trend after closing 5 shilling weaker due to increased pressure from corporate demand.

According to the NMB e-market report, the shilling weakened on Monday, with large USD demand seen across various sectors in the economy.

The report said further that the shilling will likely weaken further as demand persists, before the market sees a reversal as demand dwindles at higher levels of the USD/TZS pair.

On Monday, the interbank money market volume was recorded at 31.5bn/-with the shilling exchanged at the levels of between 7.5 per cent and 3.0 per cent.

In the local money markets, liquidity remains tight as demand for short-term funds is seen trending higher, with interest rates trading upwards of 6 per cent.

Similarly the Kenya’s shilling weakened slightly in early business on Tuesday, under pressure due to some corporate demand for dollars and continuing jitters in emerging markets, traders said.

By 0723 GMT, the shilling was quoted at 105.50/60 to the dollar, compared with Monday’s close of 105.40/50.

The Ugandan shilling was flat on Monday but market players were on alert for any signs of depreciation pressure after the central bank resumed its dollar purchasing programme.

At 0914 GMT, commercial banks quoted the shilling at 3,660/3,670 to the US dollar, unchanged from Friday’s close.

 
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Posted by on September 16, 2015 in Business News

 

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Shilling makes ‘some headway’ against dollar

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The shilling made some headway against the dollar yesterday on the back of increased flows and declining corporate demand, with medium volatility expected in the near future.

Analysts said the shilling was bound to appreciate or stabilize further, thanks to favourable macroeconomics fundamental that are heading into the right direction.

Tanzania Securities Chief Executive Officer Moremi Marwa said given the last year fluctuation pace of about one per cent, the local currency was relatively stable and likely to remain so.

“It’s too early to predict on the shilling movement for this year as the current year’s parameters might not be the same as last year’s. “ H o w e v e r , macroeconomics fundamental are pointing to the right direction of the local currency stability in this year,” Mr Marwa told the Daily News.

The country’s letter of intent to International Monetary Fund shows that economic activities have remained robust with GDP projected to grow by 7 per cent last year and 6.7 per cent this year against the 6.6 per cent of 2011.

On the other hand, inflation eased to 12.1 per cent last December from 19.8 per cent of January same year.

Headline inflation is projected to continue easing in the months to come and return to single digit by the end of June. Standard Chartered Bank said yesterday that the shilling gained some grounds against the dollar on the back of agro-inflows and declining corporate demand.

“We anticipate the shilling to further appreciate today (Wednesday) with the low to medium price volatility expected in the market,” Standard Chartered Bank said on its Daily Market Report.

National Microfinance Bank (NMB) said demand for the hard currency mainly came from energy sector and traders as agro-inflows and the central bank’s intervention matching the same.

The bank said on its e-newsletter that the market closed at 1588/1609 with an upside risk in case of any significant demand days ahead. Mr Marwa has it that the shilling stabilising parameters are sound since the ups and downs that were experienced last year are expected to ease further in this year.

The shilling last year went off board to trade at over 1,600/- a dollar, following increased demand of oil to generate electricity and delays in disbursements of donors’ budget support that created huge supply-demand gap.

The government, through the letter of intent to IMF, said the exchange rate would remain market determined and the BoT will continue to participate in the foreign exchange market only for liquidity.

Source: The Daily News

 
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Posted by on January 21, 2013 in Tanzania News

 

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