Bloomberg News

Tanzania’s Shilling Gains as Tourism Dollar Inflows Increase

October 05, 2011

Oct. 5 (Bloomberg) -- Tanzania’s shilling appreciated as dollar proceeds from the tourism industry increased.

The currency of East Africa’s second-biggest economy gained as much as 4.8 percent at 1,591.5 per dollar, and traded 0.7 percent up at 1,660.5 by 12:52 p.m. in Dar es Salaam, the commercial capital, paring its decline this year to 11 percent, according to data compiled by Bloomberg.

“We have seen inflows from the tourism sector,” said Eric Chijoriga, a trader with National Bank of Commerce Ltd., Absa Group Ltd.’s Tanzanian unit, said by phone. “But the shilling is still in a weak zone, because we expect demand for dollars to increase, so may not hold for long.”

Tourism’s total contribution to the country’s gross domestic product is expected to increase to 13.4 percent of GDP by 2021 from 12.9 percent now, the World Travel & Tourism Council said on its website.

Tanzania’s inflation rate climbed to 14.1 percent in August on higher energy and food costs, the National Bureau of Statistics said Sept. 15.

--Editors: Ana Monteiro, Peter Branton

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

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net -0- Oct/05/2011 10:01 GMT


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus