Shilling calm despite demand, headwinds

THE shilling has remained calm against the US dollar despite global headwinds and increasing demand from importers.

The shilling stability was supported by “thin flows from NGOs and mining” on Wednesday as the market closed at 2,347/2,387 levels.

NMB said in its e-Market Publication that the demand for US dollars came mainly from oil market companies (OMCs) and manufacturers but inflow quells the market.

“Demand from importers such as OMCs and manufacturers continue to be supported by thin flows from NGOs and mining space,” the NMB report said.

Globally, the report said, the US dollar hovered around five-week lows on

Wednesday, before the conclusion of the Federal Reserve’s policy meeting, where investors were looking for any insight on what might happen with interest rates, given the turmoil in the banking sector.

The shilling, according to Bank of Tanzania (BoT) yesterday data, fluctuated by less than one unit since the beginning of the month from 2,321/40 to 2,322/36.

Also, year to date, the shilling depreciated by almost 2/- from 2,320/- to 2,322/- per US dollar.

On annual basis, the central bank said, the shilling depreciated by 0.5 per cent from 2,309/- per US dollar last March.

To further reduce US dollar demand, Tanzania last week entered a bilateral trade settlement agreement with India to cater to the usage of domestic currencies in trade settlement between the two countries.

The agreement means that the balance of payment between Tanzania and India shall be the primary determinant of the valuation of the shilling and Rupee against each other.

Nonetheless, said Alpha Capital, Head of Research and Financial Analytics, Imani Muhingo, “this does not stop arbitrageurs”.

This means that when the cross-currency exchange with other currencies creates a profitable opportunity, hence the secondary and more powerful determinant shall still be the total balance of payment between each of the two countries and the world.

India was the leading destination of Tanzanian exports last year, with an estimated value of exports reaching 2.7tri/- which was a 124 per cent growth from the height of the pandemic in 2020.

Additionally, India accounted for 17.2per cent of the total value of Tanzanian exports last year, slightly up from 15.7per cent in 2021.

The estimated value of Indian imports last year was 4.5tri/-, recording an 80.4 per cent growth from the height of the pandemic in 2020, while accounting for 12.6 per cent of the total imports in Tanzania.

Related Articles

Back to top button
hacklink panel hacklink al hacklink sollet hdxvipizle jojobet casibom bahiscom ikimisli 1xbet deneme bonusu veren siteler en güvenilir slot siteleri tarafbetmatadorbet
hack forum hack forum hacklink hacklink panel cami halısı cami halısı cami halısı cami halısı cami halısı saricahali.com.tr cami halısı cami halısı cami halısı cami halısı evden eve nakliyat ofis taşıma seo hizmeti Onwin yagnatourism.com tatilmoni.com Marmaris casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom casibom vds Bahis Siteleri onwin Diyarbet google.com.tr
ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino ByCasino
Tipobet Tipobet Tipobet Tipobet Tipobet Tipobet Tipobet Tipobet
Sahabet Sahabet Sahabet Sahabet Sahabet Sahabet Sahabet Sahabet
Onwin Onwin Onwin Onwin Onwin
Starzbet Starzbet Starzbet Starzbet Starzbet Starzbet Starzbet
Starzbet Starzbet Starzbet Starzbet Starzbet Starzbet