AfricaPress-Tanzania: The shilling has continued to retain its steadiness, thanks to demand and supply stabilized by cashew nuts inflows.
The shilling, which lost a pip started a week at 2,306/2,338 against the US dollar, has been stable for almost the entire year.
NMB Bank said in its e-Market report that the local currency was steady against the dollar as moderate demand from importers, mostly oil marketing companies and the manufacturing sector was buoyed by agri inflows.
“We expect the shilling to remain stable as cashew inflows continue supporting the outstanding demand in the market,” NMB said in the report.
According to Bank of Tanzania (BoT), traditional exports almost doubled to 914.8 million US dollars in a year to September, from 567.5 million US dollars in the corresponding period last year.
“The increase manifested in exports of cashew nuts, cotton, cloves, sisal and tobacco,” the central bank said.
Cashew nuts, cotton, cloves and tobacco rose in export volume, attributable to increase in production.
Orbit Securities said in its Weekly Market Synopsis that the shilling remained unwavering for the entire last week, depreciating by a pip.
“The shilling remained resilient while depreciating by a pip to close the week at a weighted average exchange rate of 2,309/13 a US dollar,” Orbit said.
However, the shilling in the last ten months depreciated by 11 per cent from 2,299/- to 2,309/-.
According to Orbit Securities, the Interbank Foreign Exchange Market (IFEM) transaction value went up by 25.5 per cent to a total of 8.03million US dollars compared to 6.4million US dollars traded during the previous week.
“Value of transactions has resumed ascendance two weeks in a row after a dip during the election week,” Orbit said.
Nevertheless, BoT Monthly Economic Review for October said the shilling remained stable against the US dollar, trading at an average of 2,309/04 per US dollar from 2,308/12 per US dollar in the preceding month.
“The IFEM operated smoothly in September, with gradual increase in foreign exchange from export-related economic activities, notably crop exports,” BoT said.
THE IFEM transactions amounted to 58.8 million US dollars, of which the BoT sold 28.5 million US dollars.