{"id":423085,"date":"2011-05-12T20:11:15","date_gmt":"2011-05-12T20:11:15","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/"},"modified":"2011-05-12T20:11:15","modified_gmt":"2011-05-12T20:11:15","slug":"treasury-leaves-market-to-stabilize-shilling","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/","title":{"rendered":"Treasury Leaves Market to Stabilize Shilling"},"content":{"rendered":"<div readability=\"91.5664798777\">\n<hr class=\"thin clear\" \/>\n<hr class=\"thin clear\" \/>\n<p><a href=\"http:\/\/dailynews.co.tz\/\" target=\"_blank\" rel=\"noopener noreferrer\">Tanzania Daily News<\/a> (Dar\u00a0es\u00a0Salaam)<\/p>\n<p>Abduel Elinaza<\/p>\n<p>12 May 2011<\/p>\n<hr class=\"thin clear\" \/>\n<p>THE Treasury said on Thursday that the fate on the shillings would be determined by market forces despite fears of inflation following a new round of depreciation in the last two weeks.<\/p>\n<p>The shilling has lost ground by between 5\/- and 8\/- against the US dollar in the previous two weeks ending yesterday as per bureau de change rates, but lost almost 7.0 per cent in the first seven months of this fiscal year.<\/p>\n<p>The &#8216;Daily News&#8217; spot survey in some of the money exchange shops shows the shilling trading between 1,505 and 1,514\/- as of on Thursday. The Minister for Finance, Mr Mustafa Mkulo, has told the International Monetary Fund (IMF) in a letter of intent that the exchange rate will be determined by the market.<\/p>\n<p>&#8220;The Bank of Tanzania will participate in the foreign exchange market with the main objective of implementing its monetary policy and smoothing short-term exchange rate volatility,&#8221; Mr Mkulo said in the letter.<\/p>\n<p>The minister maintained that the central bank will continue maintaining an adequate level of international reserves which is currently enough to cover imports for five months.<\/p>\n<p>He said that the central bank will continue to implement a monetary policy that is consistent with low inflation, while providing room for private sector&#8217;s credit growth.<\/p>\n<p>&#8220;The Bank of Tanzania will monitor inflation closely and make appropriate adjustments to monetary targets in the events when core inflation begins to exhibit indications of rising inflationary pressures,&#8221; Mr Mkulo said.<\/p>\n<p>Early last month, the Bank of Tanzania said the shilling depreciation should not always be looked as a bad thing as it helps the country to export more.<\/p>\n<p>&#8220;I know importers will feel the pitch, but we have to balance the two to reach a level where we will not harm the economy,&#8221; the BoT Governor, Prof Ndulu, said.<\/p>\n<p>He urged Tanzanians to take advantages of depreciation to increase exports. The new exchange rate suggests that importers are paying five to ten shillings more for every one dollar worth of imported goods compared to January this year.<\/p>\n<p>When contacted for comments, Mzumbe University&#8217;s Dar es Salaam Business School Lecturer, Dr Honest Ngowi, said yesterday&#8217;s &#8220;shilling free fall&#8221; is disturbing budget management because payments are done in local currency while purchases are made in dollar.<\/p>\n<p>&#8220;A big chunk of the budget will be eaten up by the depreciation. This will increase dollarization as local currency holders will lose faith on the shilling which is not good on the economy,&#8221; Dr Ngowi said.<\/p>\n<p>The economist suggested that the central bank should intervene in the market at some point to rescue the situation before it&#8217;s too late. But he cautioned that any intervention would be a short term solution as efforts should be in place to increase exports and reduce importation of unnecessary goods like toothpicks.<\/p>\n<p>&#8220;Solution here should be an increase on exports while discouraging imports as BoT cannot intervene all the time,&#8221; Dr Ngowi said.<\/p>\n<p>Economists, however, argue that the country is a net importer and shilling depreciation would do more harm than strengthen the value of the country&#8217;s currency.<\/p>\n<p>The currency dealers attributed the weakening to increased demand for dollars from oil importers, and foreign currency purchases by BoT.<\/p>\n<p>In the year ending this February, BoT participation in the foreign exchange market declined compared with similar period in 2009 and 2010 as banks sold more foreign exchange to meet their liquidity needs.<\/p>\n<p>The central bank sold 1,007.2 million dollars, accounting for almost 50 per cent of the total volume traded compared with 98 per cent and 79 per cent recorded in the year ending February 2010 and 2009, respectively.<\/p>\n<p>A banker said that the weakening shilling is working to nullify the recent drop in commodity prices in the international markets and will increase inflationary pressures, dimming the country&#8217;s economic outlook.<\/p>\n<p>&#8220;The weak shilling is actually expected to increase if our import and export situation will not change,&#8221; said the banker.<\/p>\n<p><\/p>\n<fieldset>\n<legend align=\"center\"><strong>More News on allAfrica.com<\/strong><\/legend>\n<\/fieldset>\n<p>AllAfrica &#8211; All the Time<\/p>\n<hr \/>\n<\/div>\n<\/p>\n<p>Read the original:<br \/>\n<a target=\"_blank\" href=\"http:\/\/allafrica.com\/stories\/201105121203.html\" title=\"Treasury Leaves Market to Stabilize Shilling\" rel=\"noopener noreferrer\">Treasury Leaves Market to Stabilize Shilling<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p> Tanzania Daily News (Dar\u00a0es\u00a0Salaam) Abduel Elinaza 12 May 2011 THE Treasury said on Thursday that the fate on the shillings would be determined by market forces despite fears of inflation following a new round of depreciation in the last two weeks. The shilling has lost ground by between 5\/- and 8\/- against the US dollar in the previous two weeks ending yesterday as per bureau de change rates, but lost almost 7.0 per cent in the first seven months of this fiscal year. The &#8216;Daily News&#8217; spot survey in some of the money exchange shops shows the shilling trading between 1,505 and 1,514\/- as of on Thursday<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-423085","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-local-news"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Treasury Leaves Market to Stabilize Shilling - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Treasury Leaves Market to Stabilize Shilling - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"Tanzania Daily News (Dar\u00a0es\u00a0Salaam) Abduel Elinaza 12 May 2011 THE Treasury said on Thursday that the fate on the shillings would be determined by market forces despite fears of inflation following a new round of depreciation in the last two weeks. The shilling has lost ground by between 5\/- and 8\/- against the US dollar in the previous two weeks ending yesterday as per bureau de change rates, but lost almost 7.0 per cent in the first seven months of this fiscal year. The &#039;Daily News&#039; spot survey in some of the money exchange shops shows the shilling trading between 1,505 and 1,514\/- as of on Thursday\" \/>\n<meta name=\"twitter:creator\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:site\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"Treasury Leaves Market to Stabilize Shilling\",\"datePublished\":\"2011-05-12T20:11:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/\"},\"wordCount\":684,\"commentCount\":0,\"articleSection\":[\"Local News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/\",\"name\":\"Treasury Leaves Market to Stabilize Shilling - Ghanamma.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\"},\"datePublished\":\"2011-05-12T20:11:15+00:00\",\"author\":{\"@id\":\"\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/\",\"name\":\"Ghanamma.com\",\"description\":\"News In Ghana - Latest Ghana News Headlines\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Treasury Leaves Market to Stabilize Shilling - Ghanamma.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/","twitter_card":"summary_large_image","twitter_title":"Treasury Leaves Market to Stabilize Shilling - Ghanamma.com","twitter_description":"Tanzania Daily News (Dar\u00a0es\u00a0Salaam) Abduel Elinaza 12 May 2011 THE Treasury said on Thursday that the fate on the shillings would be determined by market forces despite fears of inflation following a new round of depreciation in the last two weeks. The shilling has lost ground by between 5\/- and 8\/- against the US dollar in the previous two weeks ending yesterday as per bureau de change rates, but lost almost 7.0 per cent in the first seven months of this fiscal year. The 'Daily News' spot survey in some of the money exchange shops shows the shilling trading between 1,505 and 1,514\/- as of on Thursday","twitter_creator":"@ghanamma","twitter_site":"@ghanamma","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/#article","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/"},"author":{"name":"","@id":""},"headline":"Treasury Leaves Market to Stabilize Shilling","datePublished":"2011-05-12T20:11:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/"},"wordCount":684,"commentCount":0,"articleSection":["Local News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/","url":"https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/","name":"Treasury Leaves Market to Stabilize Shilling - Ghanamma.com","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/#website"},"datePublished":"2011-05-12T20:11:15+00:00","author":{"@id":""},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ghanamma.com\/2011\/05\/12\/treasury-leaves-market-to-stabilize-shilling\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.ghanamma.com\/2011\/#website","url":"https:\/\/www.ghanamma.com\/2011\/","name":"Ghanamma.com","description":"News In Ghana - Latest Ghana News Headlines","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/423085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/comments?post=423085"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/423085\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/media?parent=423085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/categories?post=423085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/tags?post=423085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}