Tanzania shilling jumps after cbank pumps in dollars

[nngu007]

Fri Oct 28, 2011 12:38pm GMT

DAR ES SALAAM Oct 28 (Reuters) - The Tanzanian shilling bounced off record lows against the dollar on Friday after the central bank pumped in dollars, traders said.

Commercial banks quoted the shilling at 1,640/1,650 in the afternoon part of the session, up from 1,815/1,825 at Thursday's close.

"The central bank has entered the market strongly this time to support the shilling. This has helped to assure the market and encouraged other players to offload their dollars," Alex Ngusaru, head of treasury at CRDB Bank, told Reuters.

"Confidence has been restored in the market after the central bank showed that it was serious in enforcing measures aimed at supporting the shilling."
Although Bank of Tanzania (BOT) is traditionally the main supplier of foreign currency in the market, it had hitherto not escalated intervention measures in favour of the shilling, even as the shilling hit one record low after the other.
Traders said they expected the shilling to trade below the 1,700 level next week after the central bank's aggressive intervention.

"We opened at 1,853 this morning, by mid-afternoon we reached 1,740/1,750, and we are now closing at 1,640/1,650," said Cleopa Dickson, a trader at Bank of Africa, Tanzania.

"The central bank is sending strong signals in the market that it wants the currency to return to below 1,700 levels and we think that is what will happen from Monday next week."

Traders said a new central bank directive that lowered the maximum net open position limit for banks from 20 percent to 10 percent would lead to a strengthening of the shilling in the days ahead because it would force banks to offload their dollars. (Reporting by Fumbuka Ng'wanakilala; Editing by Duncan Miriri and Stephen Nisbet)

© Thomson Reuters 2011 All rights reserved

 

[nngu007]

Finally, but if we had GOLD reserves we would have not have to suffer like this...

 

[TIMING]

Yes, and gold yote inapelekwa canada

 

[TIMING]

Finally, but if we had GOLD reserves we would have not have to suffer like this...

its a temporary measure mkuu

mishahara ishalipwa, kodi imeshachapwa, wakuumia wameumia.... subiri tena karibia na mwisho wa mwezi uone

 

[MTAZAMO]

hizi hatua hazisaidii tena wamekurupuka kama vile hawakuwa na plan yeyote.how long will take for the market to gain confidence on Tshs?tena kwa hatua kama hizi!! Hii ni less than short term plan!!! Profesa Ndulu pasua kichwa bana tuone faida ya u profesa!!!

 

[Entrepreneur]

Thank God, japo ni hatua za muda but zimenisaidia kuokoa fedha zangu nyingi sana.

Na sijui ni kwa nini bado nasikia harufu ya Conspiracy. Au hii ni aina mpya ya kukusanya fedha kutoka mifukon mwetu! Eeh Mungu tusaidie wakati nasi tunatafuta nafasi ya kujisaidia

 

[Ndahani]

Hii kitu haijakaa sawa kabisa. Central bank wanauza dola kwa 1690. Why commercial banks wanaziuza kwa 1820? Nani ana regulate this business of forex exchange? Is it not somebody from India?

 

[mopaozi]

Hata wafanyeje BOP hakuna tunaagiza sana nje kuliko kuuza nje so unategemea muujiza gani hapo na huu mgao wa umeme ndo kabisaa pia nao utaanza kuagizwa kutoka nje watu wanahifadhi dola sasa kuliko hela yetu madasu!!

 

[M-pesa]

Kama unafedha nyingi nakushauri utumie FX products kufanya hedging. Nenda Stanchart, Citi bank au NBC utapata hizi products.

Thank God, japo ni hatua za muda but zimenisaidia kuokoa fedha zangu nyingi sana.

Na sijui ni kwa nini bado nasikia harufu ya Conspiracy. Au hii ni aina mpya ya kukusanya fedha kutoka mifukon mwetu! Eeh Mungu tusaidie wakati nasi tunatafuta nafasi ya kujisaidia

 

[mopaozi]

Dola leo 1700