By BUSINESS REPORTERTHE Tanzania's shilling is expected to extend its gains in the days ahead, buoyed by inflows from cotton exports.
Commercial banks quoted the shilling at 1,573/1,583 to the dollar on Friday, stronger than 1,578/1,588 a week ago.
Cotton is among Tanzania's main cash crops along with coffee and cashew nuts.
"The shilling will continue to strengthen due to inflows, especially from cotton exports. Previous experience shows that the shilling usually firms during this time of the year," said Theopistar Mnale, a trader at Tanzania Investment Bank.
"The Bank of Tanzania has also been intervening in the market to ensure that any big demand for dollars is accommodated."
Traders said they expected the shilling to trade in the 1,570-1,580 range in the days ahead.
"The shilling should remain stable or strengthen in the coming week. There are no factors to weaken the shilling at the moment," said Kelvin Kisinda, a dealer at CRDB Bank.
"There is the usual demand from the oil sector but inflows from cotton exports are seen further strengthening the shilling."
The central bank said it traded $33.45 million on the interbank foreign exchange market over the past week.
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