Currency crises: Are we heading the Russian way?

Fx Trader · Jan 20, 2015

Hi Friend

Your thoughts on the rapid depreciation of the shilling against the US dollar. All EA currencies have depreciated against the USD dollar sine the beginning of the year. Tanzanian currency is the worse performer

1. Tanzanian Shilling has depreciated by over 6%
2. Kenyan Shilling has depreciated by 1.2%
3. Ugandan Shilling has deprecated by 4%

In addition, Kenyan and Uganda Central Banks have intervened to slow down the deprecation. Why not Tanzania? at an average of 6% per month we will be one of the worse performing currencies in the world! God bless Tanzania!

Zungu Pule · Jan 20, 2015

What are the actions taken by Kenya and Uganda Central Banks? And against which source(s) of currency depreciation? What is causing TZ shilling depreciation against USD? A weaker currency against the USD is not necessarily a bad thing. We are feeling the pain because Tz is a net importer.

Abunuas · Jan 20, 2015

hivi yule professor anafanya nini pale BOT?

Fx Trader said:
Hi Friend

Your thoughts on the rapid depreciation of the shilling against the US dollar. All EA currencies have depreciated against the USD dollar sine the beginning of the year. Tanzanian currency is the worse performer

1. Tanzanian Shilling has depreciated by over 6%
2. Kenyan Shilling has depreciated by 1.2%
3. Ugandan Shilling has deprecated by 4%

In addition, Kenyan and Uganda Central Banks have intervened to slow down the deprecation. Why not Tanzania? at an average of 6% per month we will be one of the worse performing currencies in the world! God bless Tanzania!

Fx Trader · Jan 20, 2015

well if you follow the news carefully. Kenya and Uganda have sold dollars in the market. Since they are net importers like us they know that a rapidly depreciating currency is bad for the economy in terms of inflation etc. A gradual depreciation is not a bad thing because it can make our exports competitive. However, a rapid depreciation leads is negative for any economy because it can lead to financial instability (deposits being converted into hard currency).

Historically, we know that Bank of Tanzania is always reactive rather than proactive

Fx Trader · Jan 20, 2015

Bunch of Incompetent scholars! They only thing the are good at is stealing.

Zamiluni Zamiluni · Jan 20, 2015

Bei ya leo imefikia TzS. 1,825/- kwa dollar !!!

Fx Trader · Jan 20, 2015

My friend, escrow and CCM has killed the economy! Let the President take his sweet time!

Chungurumbira · Jan 20, 2015

Mchumi daraja moja yuko wapi??? CCM ukoo wa makoikoi tu!! Adam malima wapi? Saada mkuya wapi?? Kikwete yuko wapi??? Nec ya CCM iko wapi??? the full organ ya CCM iko wapi??

Maundumula · Jan 20, 2015

Leo Dollar imeshafikia 1805 kutoka 1600 ilipokuwa miezi kama 3 nyuma.

Ni shida

Fx Trader · Jan 20, 2015

The sad part is that there is no action or statement from Bank of Tanzania or the MoF, very very sad indeed! We will feel no significant impact in the fall of oil prices!. The deputy MoF has started to campaign instead of tackling the real issues.

Entim · Jan 20, 2015

Zungu Pule said:
What are the actions taken by Kenya and Uganda Central Banks? And against which source(s) of currency depreciation? What is causing TZ shilling depreciation against USD? A weaker currency against the USD is not necessarily a bad thing. We are feeling the pain because Tz is a net importer.

Sure, Tz is a net importer of gold, tanzanite, cotton, sisal, cashewnut, fish, etc.....etc.....etc....net importer yes net importer as you have said....over.

Mfikirishi · Jan 20, 2015

What do you expect for a country that imports everything including Chinese street hawkers (machingas)??
Don't dare to compare Tz with the Russia... be as it may...they are by far better than us...

Entim · Jan 20, 2015

Fx Trader said:
My friend, escrow and CCM has killed the economy! Let the President take his sweet time!

Sweetest moment...

Fx Trader · Jan 20, 2015

atleast the Russian Central Bank took some action. Sisi kimya tu. Plus the speed of depreciation is extremely worrying. A sign of incompetent leadership at all levels. Actually, since oil prices have dropped by more than 50% the demand for USD should drop too. But its the Escrow effect!

Ze General · Jan 20, 2015

Tanzania eeeeeeee nchi yangu ooooooo

Fx Trader · Jan 20, 2015

Serikali ya wezii! Bye bye CCM! To protect a Singh . Kikwete took the country to dogs!

bona · Jan 20, 2015

Cv ya wazir wa fedha yule mama tunaijua what do you expect???? mtu amesoma vyuo vya kuunga unga kama vya kule bugurun kwa mnyaman mnategema ataelewa mambo ya depreciation!!!

Fx Trader · Jan 20, 2015

They are all incapable of leading this country. Bunch of failures!

Zungu Pule · Jan 20, 2015

Entim said:
Sure, Tz is a net importer of gold, tanzanite, cotton, sisal, cashewnut, fish, etc.....etc.....etc....net importer yes net importer as you have said....over.

Sorry, I don't follow you. This is a question of macroeconomics, and one has to look at the economy as a whole.

999 · Jan 20, 2015

Fx Trader kuna mtu anaitwa faiza foxy atakuja kukanusha hii kitu.
Hata escrow alisema hakuna wizi pale, JK akasema hela SI za umma cha kushangaza watu wanawajibishwa na kufikishwa mahakamani

Currency crises: Are we heading the Russian way?

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