Tanzania Current Account Deficit Narrows

[Wacha1]

TANZANIA current account narrowed to a deficit of 893.7 million US dollars in the year ending October 2020, more than a half of the deficit of 1,615.2 million US dollars recorded in the corresponding period last year on account of improved increase in export of goods, combined with decrease in imports.

According to the Bank of Tanzania (BoT) monthly economic review for November, the overall balance of payments recorded a deficit of 568.3million US dollars compared with a surplus of 200.4 million US dollars in the corresponding period last year owing to relatively low official flows.

The exports of goods and services amounted to 8,856.5 million US dollars in the year ending October compared to 9,393.1 million US dollars in the year ending October 2019. In October this year the exports of goods and services amounted to 757.8 million US dollars lower compared to 1,032.4 million US dollars in October last year.

Traditional exports increased to 788.5 million US dollars in the year ending October from 696.2 million US dollars in the corresponding period in 2019. Much of the increase featured in exports of cashew nuts, cotton, cloves, tobacco and sisal. Cashew nuts and sisal exports rose on account of increase in both volume and unit prices. The exports of cotton, cloves and sisal rose on account of an increase in export volume, supported by increased production. The exports of coffee and tea declined due to low export volume.

On month-to-month, traditional goods exports declined to 80.3 million US dollars from 206.6 million US dollars in the corresponding month last year largely explained by low exports of cashew nuts, tobacco, cotton and sisal. Exports of non-traditional goods improved to 5,076.7 million US dollars in the year ending October from 4,070.8 million US dollars in the corresponding period in 2019, owing to increase in exports of gold, mineral concentrates, horticulture and manufactured goods.

During the period, gold, which accounted for 55.8 per cent of total non-traditional exports, increased by 35.9 per cent to 2,833.2 million US dollars associated with export volume and price effects. On month-to-month, export value of gold increased to 259.3 million US dollars from 252.2 million US dollars in October last year owing to increase in volume of gold coupled with rising gold prices.

Services receipts amounted to 2,688.1 million US dollars in the year ending October lower than 4,231.8 million US dollars in the corresponding period in 2019. The travel receipts, which mostly comprise receipts from tourism, declined by 50.1 per cent to 1,292.2 million US dollars. This was attributable to the measures taken to limit the spread of Covid-19 in tourist source countries.

The measures included lockdown and suspension of international passenger flights. During October this year the travel receipts amounted to 57.9 million US dollars compared to 229.4 million US dollars in October last year.
Credit: Tanzania Daily News (Dar es Salaam)

Mwenye macho haambiwi tazama.

 

[Smart911]

Hii siyo habari nzuri hata kidogo

 

[Wacha1]

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Gold exports up by 35.9 percent in November. BOT confirmed that the exports increased to 2,833.2 million USD in the year ending 2020 compared to 2,084.9 million USD posted in the previous year.​

Click below to follow the link:
Dailynews

 

[mama D]

View attachment 1661799​

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Gold exports up by 35.9 percent in November. BOT confirmed that the exports increased to 2,833.2 million USD in the year ending 2020 compared to 2,084.9 million USD posted in the previous year.​

Click below to follow the link:
Dailynews

Wacha 🤝

 

[Bancho]

What implications do this news have on our economy

 

[massaiboi]

Hii siyo habari nzuri hata kidogo...

Nyie kila kitu sio habari nzuri hata ambacho hamjui, sio kila kitu lazima kucomment, haya tuambie basi kwa nn sio habari nzuri?

 

[Kiranga]

Korosho wameachia kimyakimya inaonekana.

 

[SueIsmael]

What implications do this news have on our economy

Basic economics: If exports are higher than imports, that's good news. For one, it strengthens our currency.

This year, imports have been less because of the pandemic, so that could have been a "silver lining" of the pandemic. We cannot ride this wave for long and need to be more strategic. Other countries will be more aggressive once the borders are opened, as they strive to improve their economies; what is Tanzania looking to do? What is our unique advantage on this?

And also, in future, I hope our country will increase exports of manufactured and/or refined goods and less raw materials/goods.

 

[Bancho]

Basic economics: If exports are higher than imports, that's good news. For one, it strengthens our currency.

This year, imports have been less because of the pandemic, so that could have been a "silver lining" of the pandemic. We cannot ride this wave for long and need to be more strategic. Other countries will be more aggressive once the borders are opened, as they strive to improve their economies; what is Tanzania looking to do? What is our unique advantage on this?

And also, in future, I hope our country will increase exports of manufactured and/or refined goods and less raw materials/goods.

Well understood but i have one more question. Am getting confused here, favorable current account strengthen our currency, while the stronger the currency the difficulty it becomes to export.

So is it wise to narrow the deficit and strengthen our currency at the expense of export or let the deficit wide?

 

[Wacha1]

Tanzania: Lending Rates Decline As Adequate Liquidity Levels Surge​

Credit: Tanzania Daily News (Dar es Salaam) Tanzania: Lending Rates Decline As Adequate Liquidity Levels Surge - allAfrica.com



INTEREST rates on loans and deposits declined at the end of November last year, reflecting adequate liquidity levels in the market attributed to the Bank of Tanzania (BoT)'s sustained accommodative monetary policy.

According to the central bank's latest report, the overall lending interest rate and one-year lending interest rate in the month under review declined by 1.33 percentage points and 1.20 percentage points to an average of 16.61 per cent and 15.70 per cent, respectively from the levels recorded in November 2019.

Likewise, the overall time deposits interest rate and one-year deposit interest rate decreased by 23 basis points and 94 basis points to 6.74 per cent and 8.43 per cent, respectively. As a result, the spread between one-year lending and deposit interest rates narrowed to 7.27 percentage points from 7.51 percentage points.

During the reference period, domestic credit by the banking system recorded an annual growth of 20.0 per cent in November compared to 15.4 per cent in the preceding month this year. According to BoTs monthly economic review for December, the credit extended to the central government through purchases of government securities grew by 49.6 per cent in the year ending November compared to the annual growth of 39.1 per cent in October this year.

The bank credit extended to the private sector increased by 1.0tri/- equivalent to the annual growth of 5.2 per cent, compared to 4.9 per cent in October this year.

The credit to the private sector was more prominent in personal activities largely micro, small and medium enterprises, transport and communications and hotels and restaurants.
The private sector's credit breakdown to various economic activities shows that, personal activities held the largest share of the total outstanding credit 33.6 per cent followed by trade and manufacturing activities accounting for 15.7 per cent and 9.9 per cent, respectively.

In November 2020, the monetary policy stance remained accommodative, driven largely by a need to improve credit flows to the private sector to support economic growth. Consequently, extended broad money supply increased by 1.45tri/- the year ending November.

The increase in money supply translated into the annual growth rate of 5.2 per cent, compared to 5.9 per cent registered in the year ending October this year. The broad money supply grew by 8.7 per cent compared to 10.7 per cent in the year ending October 2020. The growth of money supply was largely contributed by an increase in domestic credit.

 

[Wacha1]

World Bank revises Tanzania’s 2021 growth forecast to 5% - CNBC Africa

''The World Bank has revised Tanzania’s economic growth projections for 2021 with the country now expected to have a 5 per cent growth from a previous 2.5 per cent estimation, Raphael Maganga, Economic Analyst joins CNBC Africa for more.''

Khe khe kheeeeeeeeeeeeeeeeeeeeeee hapo bado Tanzania ya JPM inachanja mbuga. Ding .... dong!

 

[Mwanitu]

Well understood but i have one more question. Am getting confused here, favorable current account strengthen our currency, while the stronger the currency the difficulty it becomes to export.

So is it wise to narrow the deficit and strengthen our currency at the expense of export or let the deficit wide?

The statement is only true if all other factors remain constant .factors like inflation,if I recall from basic economics properly.ceteris perimbus or something like that

 

[Wacha1]

The statement is only true if all other factors remain constant .factors like inflation,if I recall from basic economics properly.ceteris perimbus or something like that

Inflation ipo kiasi gani mkuu?

 

[Bancho]

Inflation ipo kiasi gani mkuu?

Currently 3.5%

 

[Wacha1]

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[Ole]

Tanzania, a country led by a president driven by action - Dr. Akinwumi Adesina, President of the African Developement Bank (AFDB)

Kumekucha!! Habari Mpya Dunia Yaendelea Kukubali Kazi ya Rais JPM Dr. Akinwumi Adenisa African Bank - YouTube​