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Shilling fluctuates marginally in nine months

THE shilling has depreciated by 0.35 per cent in the last nine-month, which is an insignificant amount to bring market instability.

The shilling, according to Bank of Tanzania, slipped minute to 2,300/71 at the end of the first week of this month from 2292/72 of the end of the first week of January.

The nine-month 0.35 per cent explains market low volatility due to little demand and supply of either currency.

CRDB Bank said in its Financial Market Highlights, which covers the first week of this month that the US dollar and shilling traded at similar levels for the entire week.

“This indicates that the market has had low levels of volatility for the pair and also the supply of the greenback is in line with its demand,” CRDB, the largest bank in term of assets and deposits, said.

The shilling in the nine months of last year, between the first week of January and first week October, wobbled by over 2.0 per cent to 2,288/81 from 2,242/52.

An Economist-cum-banker, Dr Hildebrand Shayo, said the basic explanation behind this trend is that demand for dollar has increased and there has been low export of both agricultural products.

“[This] could be caused by both local and external factors, ranging from the appreciation of the dollar against other major currencies,” Dr Shayo, who works for TIB Development Bank, said.

He said the depreciation may also be caused by increased imports which overweighed the foreign exchange generated from exports of goods.

CRDB, however, said on other hand that the shilling on previous week gained steadily against Euro, Great Britain pound and rand.

“This was largely due to the continued uncertainty against the Brexit decision which is due to take place at the end of this month. “The global economy growth concern is another reason that contributes to the state of the currencies,” CRDB said.

Tanzania Securities, a stock brokerage firm, said on its Daily Market Report that the shilling gained by 3.55 per cent to 2,218/74 against pound and by 3.95 per cent to 2,509/85 against Euro.

Orbit Securities, the largest stock brokerage firm, said the this month kicked off well on the Interbank Foreign Exchange Market (IFEM) as the shilling gained 3.0 point-in-percentages against the dollar.

“The volume traded maintained almost similar levels to the previous week with a marginal growth of 2.0 per cent,” Orbit said in its Weekly Market Synopsis.

The total volume traded on the IFEM during the week ending last Friday was 54.92million US dollars compared to 54.07million US dollars traded during the previous week.

ZANZIBAR has recorded considerably high revenue collection in ...

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Author: DAILY NEWS Reporter

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