TANZANIA’S current account deficit narrowed to $3.13 billion which is 38% last year despite a decline in gold exports.
This was mainly due to the global lowered oil prices in the international markets making ts importation cheaper.
“The import bill of goods and services amounted to 12.416 billion US dollars, a decrease of 8.6 per cent from the value recorded in the year ending December 2014,” the Bank of Tanzania said in its latest monthly economic review.
“Most of the decrease was observed in imports of intermediate goods, particularly oil.” Gold export earnings in Africa’s No. 4 gold producer after South Africa, Ghana and Mali extended their slide, declined to 1.27 billion US dollars last year from 1.32 billion US dollars in 2013, largely due to a fall in global commodity prices and output, the bank said.
The balance of payments deficit was 258.4 million US dollars compared with a deficit of 251.8 million US dollars in 2014.
Export earnings from manufactured goods, the other main source of foreign income, rose to 1.36 billion US dollars from 1.23 billion US dollars previously, led by sisal products, cotton yarn, plastics and textiles.
Gross official foreign exchange reserves held by the central bank amounted to 4.09 billion US dollars in the year to December, or about four months of import cover.