Africa-Press – Tanzania. INTERBANK Foreign Exchange Market (IFEM) value of transactions dropped by 7.8 per cent last week, as shilling slipped above 2,310/- level for the first time at the market.
The IFEM total turn-over during the week amounted to 4.15million US dollars while the weighted average exchange rate for shilling spike by 2 percentage in points (pips) higher than the previous week.
Orbit Securities noted in its weekly market synopsis that the market crosses the mark last week as the value of the transaction dropped.
“The shilling crosses above 2,310/- against a dollar for the first time on the IFEM,” Orbit said without giving a reason.
However, on Monday, some banks quoted the local currency trading steady at 2,338/- a greenback due to moderate activity from importers.
“We have observed quite a trading session on the last day of the [last] month, with less activity from larger importers. “Inflows from mineral dealers, Agri and charities continue being main support to the current demand, NMB Bank stated in its e-Market report. The bank stated further that the local market anticipated to “remain steady throughout this week”. The shilling, according to Bank of Tanzania data, traded steadily at around 2,309/- a dollar since January but lost strength and slipped to 2,310 late last month.
In Uganda, the Ugandan shilling was trading in a broadly stable position on the back of slow importer appetite for hard currency and customary end of month inflows.
Commercial banks quoted Uganda’s shilling at 3,540/3,550, compared with last Thursday’s close of 3,560/3,570. While in Kenya, the shilling was expected to trade in a tight band in the next week as a healthy supply of dollars from exporters offsets any rising demand.
The currency of East Africa’s richest economy was trading at 107.45/65 per dollar last Thursday, up from 108.10/30 the previous week. It will be stuck in a range of 107/- and 108/- over the next few days, currency traders said.
