Tanzania Shilling Pares Decline as Central Bank Sells Dollars

Oct. 3 (Bloomberg) -- Tanzania’s shilling pared its decline after the nation’s central bank sold dollars.

The currency of East Africa’s second-biggest economy weakened as much as 0.2 percent to 1,663.25 per dollar and traded 0.1 percent down at 1,661.5 by 1 p.m. in Dar es Salaam, the commercial capital. The currency depreciated 2.7 percent in the third quarter, extending its drop this year to 11 percent.

“The central bank came through and sold some dollars this morning,” Zainul Chandoo, head treasurer at Stanbic Bank Tanzania Ltd., Standard Bank Group Ltd.’s local unit, said by phone from Dar es Salaam.

Joseph Massawe, director of economic research and policy at Bank of Tanzania, said he could not comment immediately, when contacted by phone.

--Editors: Ana Monteiro, Alan Purkiss

-0- Oct/03/2011 10:14 GMT

To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Johannesburg at asguazzin@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net