Bloomberg News

Tanzania’s Shilling Weakens as Companies Increase Dollar Demand

October 13, 2011

Oct. 13 (Bloomberg) -- Tanzania’s shilling weakened, heading for a sixth week of decreases against the U.S. currency as oil importers and food companies increased demand for dollars before a public holiday tomorrow.

The currency of East Africa’s second-biggest economy traded down 0.4 percent at 1702.5 per dollar by 12:46 p.m. in Dar es Salaam, the commercial capital, taking its retreat so far this week to 0.4 percent.

“The oil sector came in aggressively in the morning and bought dollars,” Eric Chijoriga, a trader with National Bank of Commerce Ltd., Absa Group Ltd.’s Tanzanian unit, said by phone today from Dar es Salaam. “We also saw customers from foods and beverages demand dollars.”

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. The currency has lost 13 percent against the dollar this year.

--Editors: Ana Monteiro, Shaji Mathew

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/13/2011 09:52 GMT


Burger King's Young Buns
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