Bloomberg News

Tanzania Shilling Weakens on Oil-Importer Demand for Dollars

October 11, 2011

Oct. 11 (Bloomberg) -- Tanzania’s shilling weakened against the dollar amid increased demand for the U.S. currency from oil importers and manufacturers.

The currency of East Africa’s second-biggest economy fell 0.1 percent to 1,702.50 per dollar by 2:56 p.m. in Dar es Salaam, the commercial capital. It closed at 1,700.50 yesterday.

“We saw some customers particularly oil importers and manufactures demand dollars later in the day,” Eric Chijoriga, a trader at National Bank of Commerce Ltd., said by phone from the city. “Generally the market has been quiet today with few trade deals.”

The Tanzanian shilling has weakened 13 percent against the dollar so far this year as inflation surged to a 15-month high of 14.1 percent in August on rising food and energy costs.

--Editors: Paul Richardson, 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: Paul Richardson at pmrichardson@bloomberg.net.


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