Sept. 2 (Bloomberg) -- Tanzania’s shilling retreated, paring its first weekly gain in seven against the dollar, as banks increased demand for the greenback.
The currency of East Africa’s second-biggest economy depreciated 0.1 percent to 1,621.5 per dollar by 12:10 p.m. in Dar es Salaam, the commercial capital, trimming its increase this week to 0.1 percent.
“It is interbank trading that’s moving the market, with more demand for dollars, hence the depreciation of the shilling,” Zainul Chandoo, head treasurer at Standard Bank Group Ltd.’s local unit, said by phone today. “But the market is generally subdued today because companies just came back” from the Muslim Eid al-Fitr holiday, he said.
Tanzania’s shilling has slumped 8.5 percent this year, making it Africa’s third-worst performer against the dollar after Uganda and Kenya’s currencies. The shilling weakened as Tanzania’s inflation rate climbed to 13 percent in July, the fastest pace in 15 months, on higher on higher energy and food costs, the National Bureau of Statistics said Aug. 15.
--Editors: Ana Monteiro, Alex Nicholson
To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Johannesburg at firstname.lastname@example.org
To contact the editor responsible for this story: Antony Sguazzin at email@example.com -0- Sep/02/2011 09:46 GMT