Bloomberg News

Tanzania Shilling Weakens for 3rd Day on Demand From Importers

October 21, 2011

Oct. 21 (Bloomberg) -- Tanzania’s shilling weakened for a third day, extending its weekly loss against the dollar on increased demand from oil importers for the U.S. currency.

The shilling traded down 0.3 percent at 1,715 per dollar by 12:21 p.m. in Dar as Salaam, the commercial capital, taking its weekly loss to 1.1 percent.

“Oil companies have been making inquiries on demand for dollars, and buying a little,” Eric Chijoriga, a trader with National Bank of Commerce Ltd., ABSA Group’s Tanzanian unit, said by phone from Dar es Salaam. “Supply of dollars is coming in from the tourism sector mainly.”

Tanzania’s central bank this week introduced restrictions on the amount of foreign currency that lenders can buy, in an attempt to halt a 14 percent slide in the shilling this year. The country’s inflation rate climbed to 16.8 percent in September, on higher energy and food costs.

--Editors: Ben Holland, Heather Langan.

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

To contact the editors responsible for this story: Andrew J. Barden at barden@bloomberg.net; Antony Sguazzin at asguazzin@bloomberg.net


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