Tanzania’s shilling hits record low

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OgwaluMapesa

JF-Expert Member
May 24, 2008
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The Tanzania shilling hit a new, all-time low at 1,765 against the US dollar on Tuesday despite last week’s interventions by the central bank meant to stop further depreciation of the currency.

The weakening of the local currency for a fourth consecutive trading day, after minimal gains early last week has been attributed to an increase in demand for foreign currency from importers.



The freefalling shilling, which depreciated 4.7 per cent since last Monday, keeps pushing commodity prices up, making it harder for low-income earners to make ends meet.



Bankers said they expect the weakening trend to continue to the end of the year as importers of both raw materials and oil build their stocks to meet the rising demand.
 
Kwa nini isiendelee kuporomoka ikiwa kila kitu humu nchini hadi kodi ya nyumba ni Dola?
 
nina mpango wa kuziconvert hela zangu zote za madafu into us$ regardless how little it is...ni hasara kuwa tshs kama una mpango wa kufanya international transactions in the future..
kama ni arbitrageur ni rahisi kupredict...
 
Tumethubutu tumeweza tunasonga mbele!
2015 naiona kama miaka 1000,kwa mwendo huu! ni Mungu tu ndiye atunusuru otherwise migomo ya mishahara,maisha magumu haitakoma kwani kasi ya maendeleo haiendani na kasi ya ugumu wa maisha.
Tanzania repent your sin!
 
Uko sahihi mkuu,hata mimi nakuunga mkono,kubaki na shilingi ya bongo ni kama kuhidhadhi nyanya juani,kila uchao zitazidi kuharibika

maandamano said:
nina mpango wa kuziconvert hela zangu zote za madafu into us$ regardless how little it is...ni hasara kuwa tshs kama una mpango wa kufanya international transactions in the future..
kama ni arbitrageur ni rahisi kupredict...
Click to expand...
 

Kuna wengine walikuwa wanaongelea floating katika mtazamo mwingine,but we need to look from different perspective.Sijui kama akina mkullo wako serious na ku-update modern theories! Nilishawahi kutoa overview on the subject!


If the Governor has paid pivotal attention to the shiling the currency would have taken a very positive appreciation given the current stagnation of US dollars. Tanzania stabilizing, does not in anyway mean that BoT is doing anything exceptional. The Gold since Mkullo's inception to office has appreciated. Is Tanzanian Shilling correlated to the dollars

"No one knows it all. The important thing is that one is objective enough to see obvious errors and admit them. I don't know it all either. Economics is a diverse subject and if solutions were so obvious, all economists would have the same ideas and approach, but of course we know they never do, even in very intellectual societies like America"

Clearly there is a gap between the two of us. Largely enough...demand and supply has nothing to do with currency. Currency is a different economic dimension. Is like a third dimension which Americans and the English mastered a long time ago. Pounds, Dollars, and so on have no inherit value...pounds is also earned and therefore has no inherit bias so is Euro.

In fact the shift from dollar correlation to gold to pure paper is the work of Arthur Burns lifting pages from John Maynard Keynes. Maynard Keynes arguments if followed carefully did not quite avoid Gold as 'junk'. Keynes never quite make the argument that the relationship between gold and money is negligible.

Though some currencies has potential value like junk bonds especially Euro...which is not real currency. Like Chinese and Brazilian currencies which are 'pre-value' and set, which are intended to preserve wage and price and which are not real time currency. They do not float

But legal tender such as pounds and dollars and East African shillings are the world greatest example of free market system. They float freely...they are currency per excellent. Their value and value alone is so kinetic, so dependent on usability that every move that dollars makes, must affect the East African shillings and the pounds. Every move that East African shillings makes must apply to USD.

If the Tanzania Shilling will stabilize it will not gain, it will be 'loosing' in future since the stability means that other factors 'will' affect the currency and positively US D is then negatively on Shilling. The shilling iis at war with dollars, pounds, and so on and it must win them every day,every second, it must gain. The Bank of Tanzania must check on both parameters and establish a radical mechanism to rectify the situation.ndiyo kusema tunahitaji mfumo radical kabisa katika sera za uchumi,sera za mabenki nk.yes we need radical reform.Let us not rely on old fashion theory of floating the foreign currency to curb depreciation.Najua njia hii huwa anipendekeza sana Dr.Honest ngowi wa mzumbe University hata katika Articles zake but ni lazima tuwe makini.

Moving currency to Tanzania via Western Union and company to pick up dollars and pounds in Tanzania, is Shiling capitulation (which is also where you may be coming from supply demand paradigm) and is a losing positive on the Shilling. We don't have to wait for a strong dollars through interest rate spike of the US Feds to understand that there is no hedge on the currency...the Shilling

Shilling is equal to the Euro, equal to the dollars, equal to the cedis and equal to any currency in the world. But their exchange rate - the 3rd dimension of market - make all the difference. The difference (we can compute the differentials) if so stretched is a summary of the deciding economic strategies of these countries.
 
Huyu Gavana Profesa Ndullu sidhani kama anafanya kazi yake vizuri, sasa tunamkumbuka fFisadi Balali.
 
Wengine wanafurahi sana aisee....maana mfano mtu akituma hela bongo sasa hivi ambayo £1 bongo anapata 2650 kama sikosei, sasa hiyo pound moja mtu unanunua karanga tu basi, hela yetu kwa ujumla imeshuka sana tena sana....sasa hivi watu ndio wanatumia advantage kufanya transaction kutoka international ili wapate hela yetu....
 
Hapa napita, ila..

Naona JK, Mkolo na Ndulu wanatengeneza mazingira ya kuwawezesha kupandisha kima cha chini cha mshahara kufikia 316,000/=
 
Shilingi inashuka sababu ya uzembe wa serikali kutoshughulikia tatizo la umeme kwa kiasi kikubwa na kuiingiza siasa katika swala hili. Kwani viwanda vimeshindwa kuzalisha na bidhaa kuwa juu na kusababisha mfumuko wa bei na dhamani ya Shilingi kushuka.
Watanzania tegemeeni mfumuko wa bei wa hali ya juu siku za hivi karibuni.
 
There is more to come as our shilling is yet to reach rock bottom!
 
Makoye Matale said:
Huyu Gavana Profesa Ndullu sidhani kama anafanya kazi yake vizuri, sasa tunamkumbuka fFisadi Balali.
Click to expand...

Ndullu as BOT governor has failed!! Unfortunately, Kikwete is weak to remove him and replace him with people who can make a diffrence in stabilizing the shilling; Professor Delphine Rwegasira could make a very plausible replacement as BOT governor given his wide experience. Lakini mkweree hashauriki.
 
Mkwère yeye hana habari..Huyoo australia anatusua maisha..kikao ijumaa yeye kaenda jumatatu ili ale bata fresh.
 
Wale wana uchumi waliojazana wizara ya fedha hawatoi ushauri namna ya kunusuru hali hii? Ni wakati mzuri kwa serikali kuwajibika kuhusiana na hii ishu.
 
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