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Soaring inflows, dwindling dollar demand stabilise shilling

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The shilling was quoted closing the Tuesday trading at 2,185/- and 2,195/- against the greenback. CRDB Bank said in its market highlights that pressure on the shilling has eased because of an increase in inflows and slowdown in demand for the US dollar.

“The stable prices will likely persist towards the end of the week,” the bank said. It, however, warned: “With more demand pressure we may probably see it moving higher towards this year’s highs at 2,200/-.

” The National Microfinance Bank (NMB) said the shilling steadied supported by corporate pushing for lower dollar prices and natural interbank flows. “Market closed at the same levels as yesterday’s (Tuesday), but demand remains pausing pressure on the shilling unless inflows improves,” NMB said.

According to Bank of Tanzania (BoT), the shilling lost slightly less than 1/- since the beginning of this month to 2,192/59 of yesterday from 2,191/09 of May 2. On year-to-year the shilling lost slightly over one per cent up to yesterday.

The shilling opened the year exchanging at 2,150/-. The central bank said in March’s Monthly Economic Review that value of exports of goods and services amounted to 9,636.2 million US dollars compared to 8,983.2 million US dollars in the corresponding period in 2015. “This was mainly driven by improved performance in travel receipts owing to increased tourists,” BoT said in the report.