Tanzanian shilling set to strengthen against the dollar in days to come

By BUSINESS REPORTER

THE Tanzania's shilling is expected to strengthen marginally against the dollar in the days ahead, supported by corporate dollar sales and inflows from the tourism and agriculture sectors.

Commercial banks quoted the shilling at 1,580/1,590 to the dollar on Thursday, stronger than 1,582/1,592 a week ago.

"The shilling has been receiving support from corporates selling as well as inflows from tourism and some cash crop commodities, particularly cotton," said Sameer Remtulla, a trader at Commercial Bank of Africa Tanzania

Traders expect the shilling to trade in the 1,570-1,580 range in the coming days.

Mohamed Laseko, a trader at Bank of Africa Tanzania, said the shilling could gain further in the next two to three weeks.

"The shilling has also benefited from support from the central bank in terms of supplying dollars into the market and mopping up excess liquidity on the local currency," Laseko said.

The central bank said on its website that it traded $26.8 million on the interbank foreign exchange market over the past week.