Bank intervention props up Tanzanian shillings

The Tanzanian shillings have firmed up marginally against the U.S. dollar with the intervention from the Bank of Tanzania.

Market reports on Thursday confirmed that shillings were trading at 1,247/1,257 to the dollar on Wednesday whereas a week earlier the local currency was trading at 1,250/1,258 to the dollar.

During the week up to this past Wednesday, the shilling weakened to levels of 1,255/1,265 but the central bank came to the market to sell the dollar at 1,250 shillings.

The move propped up the local currency as there was a high demand for the dollar from the telecommunications and oil importation sectors.

Local foreign exchange dealers predicted that the shilling, boosted by the intervention of the Bank of Tanzania, would continue to gain against the dollar.

Another morale-booster to the shilling came from the fact that local corporates are selling dollars to meet their shilling- denominated end-of-month payments.

Source: Xinhua