Tanzanian Shilling

Tanzanian Shilling

The shilling recovered the downfall by almost 2.0 per cent last week to close the trading week at 1691/70, compared to 1724/46 of at the beginning of the month.

The National Microfinance Bank (NMB) says in its last Thursday e-Market report that shilling appreciation kept up the momentum in Thursday?s trading session to close near to high levels seen at the beginning of 2014.

?Shilling demand and interbank flows continued to be the key forces behind the move,? the bank said. Money market analysts had it that the shilling, among other reasons, was the victim of the US dollar appreciation on the back of Federal Reserve indication to increase interest rates as early as April.

?The greenback gained against most of its major peers as officials replaced a pledge to keep borrowing costs near zero for a ?considerable time? and held the rate at zero to 0.25 per cent, where it?s been since 2008,? NMB said in its report.

Nevertheless, Tanzania Securities Limited said last week the shilling picked up against all the major currencies to close the week almost 2.0 per cent strong on greenback.

Standard Chartered said the market continued observing the appreciating trend of the shilling during last Friday?s trading, while this week ?low to medium price volatility is expected.?

?The market continued to post supply from different sectors as corporates pay for their tax obligations and other shilling requirements (include Christmas),? the bank said on its weekly report.

The Tanzania Securities report shows that the shilling also gained against UK pound sterling and Kenya shilling to close the week at 2,643/71 from 2,709/77 and 18/71 from 19/09 respectively.

On year-to-year change the shilling closed at 1696/76 yesterday compared to 1602/03 on almost same day last year, confirming analysts predication.

Source Tanzania Daily News


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