After the Bank of Tanzania announcement last week of further intervention to rescue the shilling, some importers are reportedly holding their buying spree of the greenback.
The National Microfinance Bank (NMB) said some importers withheld their US dollars demand, expecting the shilling to strengthen further.
“The shilling strengthened noticeably on Monday, with positive market sentiment of a reversal of recent losses,” NMB said on its e-Market report.
The report further said the shilling would likely continue to rally, until dollar demand build‐up returns to the market at critical levels of the pair.
CRDB Bank quoted the local currency opened at the levels of buying and selling 2,005/2,015 and closed at the levels of 1,990/2000 against the dollar on Monday.
The bank said on Market Highlights “interbank activities, caused the shilling to strengthen against the dollar during yesterday’s trading session for the first time in weeks”.
BoT said the central bank sold 339 million US dollars in the market from January to April, this year to prop up the shilling but the local currency continued to weaken due to huge import bill.
The central bank said import bill for the first four months of this year exceeded that of a corresponding period last year by 300 million US dollar after the government made payments for purchase of BVR kits, and turbines for the state owned power utility firm, Tanesco.
Some measures BoT took include reducing the level of foreign currency that banks are allowed to remain with that can be used to seek benefits for foreign exchange transactions.
Daily News
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