Increase of inflows from agriculture and slowdown in demand for US dollars has resulted instabilising of the Tanzanian shilling as pressure eases. The shilling was quoted at 2168/2198 levels with an expectation of moderate demand from importers tomorrow.
According to National Microfinance Bank (NMB) e-market report, the local currency edged high against US dollars in yesterday’s trading session catapulted by tight liquidity and Agri dollar inflows. The continued inflows from agro exports will reduce pressure on the shilling which is threatened by strong importers’ demand. Liquidity remained tight on Monday as banks continue looking to fund their shilling obligations. Overnight rates trading about 17 per cent highs.
The Ugandan shilling was steady on Tuesday with commercial banks quoting the shilling at 3,365/3,375 at At 0746 GMT, unchanged from Monday’s close.
The Kenyan shilling was stable on Tuesday with commercial banks quoting the shilling at 101.45/55 to the dollar, unchanged from Monday’s closing rate. Demand for the dollar by importers is however expected to go up as the month progresses.