Shilling to gain on dollars inflows from tourism, agriculture

According to TIB market updates, the Monday’s trading session saw the USD subdue its pressure against the local currency compared to previous sessions. “The pressure on the USD/TZS pair is expected to further subdue due to the incoming cotton and tourism seasons that will aid in foreign inflows,” stated the TIB report.

The USD/TZS pair ended the session at 2265/2290. Demand and supply mismatch continues to exist but drop in demand in the foreign currency has managed to lower trading levels, somewhat slightly. Importers and manufacturers continue to hold their positions hoping for a further appreciation of the local demand.

The CRDB Financial Highlights on its part show that the local currency traded gained slightly on Monday due to slight diminish of importers demand and central bank support in the market trying to curb the pressure on the shilling.

The same trend is expected in few days to come supported by agricultural inflows.

The local money market is of healthy liquidity with rates in all of its instruments trending downwards.

NMB Bank said in its e-market report that the local currency edged slightly higher than Monday against the dollar buoyed mainly by positive sentiments from importers that dollar flows from sesame and tobacco could strengthen the shilling in the days ahead.

However, demand remains, which can reverse the trend in the days to come should the inflows not match.

Source: Daily News

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