Tanzania's central bank dumped 45 million dollars into the forex market over two back-to-back auctions because the shilling was getting hammered and everyone needed dollars. The Bank of Tanzania sold 25 million at one rate, then another 20 million the next day at a slightly different rate, and both times, way more banks showed up wanting to buy than there were dollars available. Analyst Raphael Masumbuko from Zan Securities said this kind of pressure happens around this time of year when companies are paying off foreign debts and buying fuel, but tourism money from earlier months takes a while to actually hit the banking system.
The cashew export season should start bringing in more foreign currency soon, which might take some heat off the shilling. Economist Hildebrand Shayo mentioned that these interventions help stabilize things short-term, but the country needs bigger structural fixes to keep the economy healthy long-term.
The cashew export season should start bringing in more foreign currency soon, which might take some heat off the shilling. Economist Hildebrand Shayo mentioned that these interventions help stabilize things short-term, but the country needs bigger structural fixes to keep the economy healthy long-term.
