Tanzania Shilling Heads for Biggest Weekly Decline This Year

[Pasco_jr_ngumi]

Oct. 7 (Bloomberg)- Tanzania’s shilling is headed for the biggest weekly drop this year as manufacturers buy dollars to fund imports.

The currency of East Africa’s second biggest economy fell 1.1 percent to 1,707.50 as of 1:42 p.m. in Dar es Salaam, the commercial capital, bringing its weekly decline to 2.7 percent, the most since the week ended Dec. 31. The shilling fell to 1,714.5 earlier today, its lowest level since October 1994. The currency has declined for 12 consecutive weeks, according to data compiled by Bloomberg.

“There has been significant demand today from the manufacturing sector,” said Zainul Chandoo, head of Treasury at Stanbic Bank Tanzania Ltd., a unit of Johannesburg-based Standard Bank Group Ltd., in an interview in Dar es Salaam.

--Editors: Antony Sguazzin, Emily Bowers

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

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

 

[TIMING]

we are in deeep sh!T

 

[FaizaFoxy]

Ni mzuri sana, tutapata watalii kwa wingi.

 

[Mpita Njia]

mkuu mtm, the worst is yet to come... i bet tanzania gonna be the firrt african country to declare bancruptcy

 

[Pasco_jr_ngumi]

tumpe hongeraaaaaaa JAKAYA MRISHO KIKWETE

 

[Bushloiaz]

Ni mzuri sana, tutapata watalii kwa wingi.

Uwe unatumia akili wakati mwingine

 

[mteule]

is it a deliberate move by the central bank? Inaelekea reserve ya dola kushnei...

 

[Utingo]

Ni mzuri sana, tutapata watalii kwa wingi.

usiwe unachangia mambo usiyo na ufahamu nayo!

 

[cartura]

ngoja tuje tumsikie bwana Beno Ndulu na hadithi zake za "uchumi unazidi kuimarika" despite all the facts to the contrary... sijui huwa tunadanganyana ili iweje, au probably tunataka tu kulinda ajira zetu at all cost..

 

[VoiceOfReason]

Ni mzuri sana, tutapata watalii kwa wingi.

Tungekuwa kama China tunategemea sana kuuza bidhaa zetu za ndani nje hapo sawa.., lakini sababu tunategemea dollar kununua bidhaa nyingi kutoka nje (bila kusahau petrol...) its a disaster..!!!!

 

[Mdondoaji]

By Al-amani Mutarubukwa
Dar es Salaam. Tanzania has no plan to pump more dollars into the money market to steady its shilling, but will deal with the main economic fundamentals instead.The governor of the Bank of Tanzania, Prof Benno Ndulu, said this yesterday. He said although the local currency has hit a 17-year record low against the greenback as importers' appetite for dollars continues to rise amid a scarcity of foreign exchange in the money market, the bank would not move to defend the falling shilling.

"It won't be to our benefit if we decide to artificially stabilise our currency…we would rather continue to deal with the main economic fundamentals," he told The Citizen yesterday in a telephone interview.
He was reacting to local experts who called on the country to swiftly move to defend the shilling, which has depreciated to the levels of hurting importers.

According to him, the BoT has been selling the greenback on an average of $100 million per month for the past three months, for the purpose of controlling inflation.He said the move to stabilise the shilling would reduce the country's competitiveness by negatively impacting on exporters as well as prompting tourists to opt to visit nearby countries with weaker shilling.

The governor said the shilling has been weakening mainly because of the high inflation differential against the country's trading partners and the mounting investors' anxiety that has also distabilised other currencies.
The country's inflation rate climbed to 14.1 per cent in August on higher energy and food costs, the National Bureau of Statistics said last month.

Commenting on projections by the experts that the continuing economic crisis in the Eurozone could trigger another economic downturn, double-dip recession, Prof Ndulu said the country was alert.

He said as a mechanism to avert the effects of the ongoing economic problems in the Western world, the country needed to replenish its forex stock by promoting more exports.

However, traders blamed it on the government for failing to swiftly address the power problem that has hit the country since the beginning of this year, eroding their competitiveness by increased production costs.

"We are determined to develop our manufacturing sector, but our major hindrance has been lack of adequate and reliable power supply," said the chairman of Confederation of Tanzania Industries (CTI), Mr Felix Mosha.

He said although the government was addressing the problem, it was necessary that it completes the planned power projectsin time to relieve manufacturers from the additional production costs that have gone four times higher because of using diesel generators.Tanzania exported $242.2 million worth of manufactured goods in three months through June compared to $206.1 million in the previous quarter, according to the recent report of the Bank of Tanzania.

But, the executive director of the Tanzania Exporters Association, Mr Mtemi Naluyaga, was of the view that unless the government moves quickly to empower small and medium enterprises (SMEs) in the country, exports would still be low.

"The country needs to identify our competitive advantage and empower us through credit guarantee schemes, building more processing industries and rectifying the current policy that prohibits us from selling cereals outside the country," he said.

Experts have warned that the unresolved sovereign debts in the Eurozone could have a multiplier effect, leading to low traditional export volumes, reduced tourism, dwindling investments and non-creation of jobs.

"The possibilities are high that the world will be hit by the second, deeper downturn between the beginning and the middle of next year," Dr Honest Ngowi, a Mzumbe University economics lecturer, told The Citizen. on a telephone interview.

Source: The Citizen.

 

[VoiceOfReason]

By Al-amani Mutarubukwa

"It won't be to our benefit if we decide to artificially stabilise our currency…we would rather continue to deal with the main economic fundamentals,"

He said as a mechanism to avert the effects of the ongoing economic problems in the Western world, the country needed to replenish its forex stock by promoting more exports.


"We are determined to develop our manufacturing sector, but our major hindrance has been lack of adequate and reliable power supply," said the chairman of Confederation of Tanzania Industries (CTI), Mr Felix Mosha.


But, the executive director of the Tanzania Exporters Association, Mr Mtemi Naluyaga, was of the view that unless the government moves quickly to empower small and medium enterprises (SMEs) in the country, exports would still be low.

"The country needs to identify our competitive advantage and empower us through credit guarantee schemes, building more processing industries and rectifying the current policy that prohibits us from selling cereals outside the country," he said.

Source: The Citizen.

Hizo hapo juu ndio solutions za kweli hakuna shortcuts when it comes to this matters

 

[De Javu]

Uwe unatumia akili wakati mwingine

Kama mchangiaji yupo katika uwekezaji wa utalii basi hajakosea hata kidogo, kwani hata serikali yenyewe si lazima hii ya Tz, wakati mwengine inalazimika kuishusha thamani ya pesa ili kuweza uchumi kukua kwa njia ya kuwezesha kuuza nje zaidi. Kushuka thamani ya fedha ya nchi kuna hasara pia kuna faida, moja ya faida ni kupata uwezo wa kuuza zaidi kwani bidhaa zako zitakua rahisi kwa fedha za kigeni ni pamoja huo mfano wa watalii/utalii.

 

[Buyaka]

Tanzania tuna manufacture na ku export kitu gani?

 

[SOBY]

Dollar imeongezeka thamani against Tsh, Ksh, Ush....
14% against Tsh in last week, 26.7% against Ksh na 25% against Ush.
Hivyo sioni kama utalii utaongezeka kwani majirani fedha zao ndio zinaporomoka kuliko yetu.

 

[Njowepo]

Sasa kama hata tooth pick,vitunguu swaumu,viberiti etc mnaagiza toka nje kwa kutumia forex!
Mbaya zaidi kuna hotel malipo wanataka dola,hata mauzo ya baadhi ya vitu huuzwa kwa dola

 

[Hofstede]

Kinachoiua Tanzanian Shilling ni Mikataba mibivu ya madini. Kama Tanzania ingekuwa na sera ya All money received as a result of selling gold abroad return to Tanzania tungeshuhudia Strong TZS. Ili Pesa ya madini irudi Tanzania ni lazima madini hayo yachimbwe na watanzania kwa manufaa ya watanzania wote. Unapokuwa na kundi la wafanyabishara-watawala wanao-collude na makampuni ya madini ambayo wanawawekea pesa kwenye accounts zao za offshore ni lazima tutakuwa na matatizo kama haya. Otherwise, ningeshauri serikali ibadili sera kuhusu wawekezaji wa nje na kutakiwa kulipa huduma zao zote yaani umeme, maji etc kwa kutumia USD only na pesa hizo za kulipa ni sharti zityokane na mauzo yao ya nje tu. I mean they have to take back some forex revenues for local operations, maana kodi hawalipi.

Hii itaongeza supply ya FOREX at the same time waimarishe uzalishaji wa bidhaa za ndani, nje ziagizwe za lazima tu. Mpango wa kutegemea mazao ya biashara as the only source of FOREX umepitwa na wakati. Tutumie madini yetu kwa faida yetu. 1 Kuwait dinar = 3.61 USD ni kwa sababu wanatumia mafuta yao kwa faida yao, sisi madini yanatusaidia vipi?

 

[Tutafika]

Dollar imeongezeka thamani against Tsh, Ksh, Ush....
14% against Tsh in last week, 26.7% against Ksh na 25% against Ush.
Hivyo sioni kama utalii utaongezeka kwani majirani fedha zao ndio zinaporomoka kuliko yetu.

Wote watafaidi kwani tuna-share watalii! Njia pekee ya haraka kuleta heshima ya fedha ya Tanzania ni kufuta sheria inayoruhusu main exporters hasa Madini kuweka fedha zao inje ya nchi!, mauzo yote ya madini yafanyikie tanzania na fedha zitunzwe ndani ya nchi!, Pia wazuie fedha zisitoroshwe kwenda nje ya nchi . Wafanyabiashara na mafsadi wakubwa wawe restricted kupeleka fedha nje ya nchi! (ila nasikitika sana hili linataka kuhalalishwa kikatiba kwa kuruhusu uraia wa nchi mbili)

Najua watu watasema haya yatapunguza uwekezaji, lakini wajue kwamba kama mtu anawekeza halafu pesa yote anapeleka kuweka nje ya nchi hana faida kwani fedha ile itakuza uchumi wa nje!, kitakachobaki ni sifa tu kwamba tumeuza sana nje (ila hatuna pesa)