Bloomberg News

Tanzania Shilling Slips for First Day in 3 as Banks Buy Dollars

October 04, 2011

Oct. 4 (Bloomberg) -- Tanzania’s shilling depreciated for the first day in three against as banks bought the U.S. currency, anticipating demand for dollars will increase.

The currency of East Africa’s second-biggest economy lost 0.9 percent to 1,670 per dollar by 11:55 a.m in Dar es Salaam, the commercial capital.

“It is banks that are trading today mainly in anticipation of demand for the dollar coming through in a couple of days,” Zainul Chandoo, head treasurer at Stanbic Bank Tanzania Ltd., Standard Bank Group Ltd.’s local unit, said by phone from Dar es Salaam. “We expect demand for the dollar to come from oil, telecoms and power sectors.”

Tanzania’s inflation rate climbed to 14.1 percent in August on higher energy and food costs, the National Bureau of Statistics said yesterday.

--Editors: Ana Monteiro, Peter Branton

-0- Oct/04/2011 09:00 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


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