THE prices of all selected commodities in the world market rose, with much of the increase registered in Mombasa tea auction.
According to the Bank of Tanzania (BoT) monthly economic review for September, the recovery of oil prices was subdued, associated with the second wave of Covid-19 pandemic.
In Tanzania, the value of oil imports, which accounted for 18.7 per cent of goods import declined by 14.3 per cent to 1,485.1 million US dollars, consistent with a decline in oil prices in the world market.
On monthly basis, import bill for goods decreased to 680.5 million US dollars in August this year from 767.1 million US dollars recorded in the corresponding month last year.
Gold price rose to 1,968.6 US dollars per troy ounce in August this year as uncertainty in the global financial markets remain amidst the Covid-19 pandemic.
The gold price is anticipated to remain stable, as the new approach to monetary policy in the US give gold better prospects because the periods of low inflation are usually followed by periods of high inflation tolerance, thereby reducing the yields on bonds.
In Tanzania, gold accounted for 55.9 per cent of non-traditional exports and increased by 42.9 per cent to 2,734.6 million US dollars resulting from increase in volume and unit price.
On month to-month, the export value of gold increased to 276.5 million US dollars in August from 270.6 million US dollars in the corresponding month last year, owing to increase in gold prices as a result of continued weakening of financial asset prices attributable to Covid-19 pandemic.
The increase in coffee price was partly due to weaker US dollar relative to Brazilian Real, while that of cotton was on account of rising demand in emerging markets and developing economies particularly in China.
On annual basis, all other commodity prices declined save for gold, Arabica coffee and tea (average) prices.
The weaker prices were driven by a more negative impact of Covid-19 pandemic in the first six months of 2020; with a gradual price recovery between June and August 2020.