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- Oct 6, 2011
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Bank of Tanzania (BoT) Tanzania has allayed fears against the current fluctuations of the Tanzania shilling against the dollar and that citizens should not worry because it is a normal situation in any free market economy.
Speaking with East African Business Week last week Bank of Tanzania Acting Director, Economic and Research Policies Johnson Nyella said that from June 2014 the pace of depreciation of the shilling had increased due to the US dollar strengthening after the US economic conditions stabilized.
He noted that between June 2014 to February 2015, cash value of most countries nosedived compared to the US dollar likewise the value of the Tanzania shilling tumbled and most of the currencies drastically slumped more than the Tanzania shilling.
"When the value of Tanzanian shilling fell by 7.9 % between June 2014 and February 2015, the euro fell by 17.8% in the same period, the yen of Japan fell by 15.1%, whereas the UK pound with 9.5% and the South African rand tumbled by 8.9%," Nyella revealed
Nyella added that this type of depreciation is usually in the form of free market so there is no reason to take further additional measurement to combat this situation.
However, the Bank of Tanzania which regulates the foreign exchange market has already taken necessary measures that the purchase of dollars should consider the real needs and not for the purpose of price speculation.
Source: Reuters
Speaking with East African Business Week last week Bank of Tanzania Acting Director, Economic and Research Policies Johnson Nyella said that from June 2014 the pace of depreciation of the shilling had increased due to the US dollar strengthening after the US economic conditions stabilized.
He noted that between June 2014 to February 2015, cash value of most countries nosedived compared to the US dollar likewise the value of the Tanzania shilling tumbled and most of the currencies drastically slumped more than the Tanzania shilling.
"When the value of Tanzanian shilling fell by 7.9 % between June 2014 and February 2015, the euro fell by 17.8% in the same period, the yen of Japan fell by 15.1%, whereas the UK pound with 9.5% and the South African rand tumbled by 8.9%," Nyella revealed
Nyella added that this type of depreciation is usually in the form of free market so there is no reason to take further additional measurement to combat this situation.
However, the Bank of Tanzania which regulates the foreign exchange market has already taken necessary measures that the purchase of dollars should consider the real needs and not for the purpose of price speculation.
Source: Reuters
