THE shilling has held steady its position in the first two weeks of this month thanks to lower demand for the greenback from importers.
The shilling opened the month trading at 2,237/16 a US dollar and closed the last week at 2,237/68, a steady level though still two months high. The local currency stability is however, the results of demand and supply and neither on increased exports nor productivity.
National Microfinance Bank (NMB) said that the local currency was stable against the dollar last week due to lower demand for the greenback from importers. “Shilling holds steady due to lower demand for dollars from importers,” the bank said in its daily e-Markets report last week.
The bank added: “We (NMB) expect trading activities to remain in the current range even on tomorrow’s trading session”. CRDB Bank said midweek on its market highlights report that shilling/ dollar pair continued to show no volatility and maintain stability.
“The shilling continues to show slight movements against the dollar, due to matching levels of demand and supply in the market,” CRDB report shows.
Bank of Tanzania’s Monetary Policy Statement shows that in the second half of last year the value of export of goods and services slowed down by 1.6 per cent to 4.69 billion US dollar per cent compared to similar period recorded in 2015.
“To a large extent, the increase came from improved performance across the major exports, save for manufactured goods exports that slightly declined,” BoT Monthly Economic Review of January 2017 show.
The country imports of goods and services declined by 13.7 per cent to 10.79 billion US dollars while exports increased by 5.2 per cent to 9.38 billion US dollars in December 2016. Historically, the Tanzania Shilling reached an alltime high of 2260.80 in June of 2015 and a record low of 1014.30 in December of 2004.