Shilling Dips 24% Since January

Since January this year the shilling has depreciated by about 24 percent and closed at 2,146/- against 1 USD.

The depreciation is higher by four times compared to the same period in 2014. It was then 1,668/-.

Economic report of June by Bank of Tanzania (BoT) reveals the bank had intervened to bring down the interbank foreign exchange market after April and May this year after selling 87.5 million and 75 million USDs respectively.

Against sterling pound the shilling has lost ground by about 22 percent to 3,275/- in the same period and sunk by about 17 percent to 2,400/-.

BoT data also shows shilling have depreciated by 8.21 percent to 20.55/- against Kenyan shilling.

The bank said oil and manufacturing sectors had put a little pressure on the local currency last month.

According to NMB, there could be further weakening of the currency in near future upon resumption of importer demand this month.

However, goods and services export increased in the year ending by May by 9.8 percent to 9.454.5 million USD, but this failed to counter the imports that very slightly declined to 13,305.2 million USD last month from 14,050.5 million USD in July.

BoT the shilling depreciation took place due to high prices of imported commodities including clothes and petroleum products.

In June 2014 the inflation was 6.5 percent where as in July last year it increased to 6.5 percent. Price rise in different commodities are blamed.