USD heading to 1700Tshs

[Fx Trader]

The local currency has depreciated by tzs 25 in the last month month only! Its currently trading at 1680 against 1690! Why is BoT quiet? Inflation will remain above their medium term target of 5% and probably head to double digits soon if the trend is not checked immediately.
Which fundamentals are driving the tzs higher? Or its pure speculation?

 

[idoyo]

pure speculation. take a look on dse, for example. speculation in a past month or two has been a big deal.

 

[Fx Trader]

I speculation of the dse is mainly driven by foreign investors, however if that was the case we would have definitely seen an appreciation of the USD. its time BoT becomes proactive! A depreciation of 90 tzs since the beginning of the year is not justified on fundamentals!

 

[Kashishi]

Na bado ufisadi unaoendelea kulitafuna taifa mpka JK wao akija akiodnoka mbona exchange rate ya shillingi itakuwa Tz shs 2000+. You watch out and stay tuned. Wabongo wataachiwa nchi ambayo ni mifupa mitupu.

 

[Fx Trader]

Frd I say if BoT remains on the sidelines than definitely tutafika 2000 even before Jan 2015!

 

[NullPointer]

na bado... itafika hadi buku mbili.. Sema currency isi-matter sana, maisha ya watu kwanza.. nchi nyingi tunawala kichwa currency sema bado wapo juu katika living standards... currency matters ila sio ki hivo kama watu tunavohisi..

 

[msemakweli]

Usijali. Sarafu ya pamoja ya afrika mashariki inakuja. Hebu fikiri kama haingekuwa hivyo hii shilingi ya tanzania itakuwa inatrade vipi miaka kumi ijayo? Kasheshe!

 

[Jenerali Ambamba]

Safi sana, naomba hadi mwakani local currency exchange against $ ifike 3000 ili mfumuko wa bei uwe juu sana, na thamani ya pesa yetu ishuke sana, maana watu hawaelewi, tukiwaambia CCM haifai hayaelewi sijui hawa wananchi wana matatizo gani kwenye vichwa vyao.

 

[Fx Trader]

The fall in global oil prices will have no impact on the end user with a rapidly depreciating currency. The CB should simply intervene or punish the so called cash rich ( hoarding government deposits) banks who are simply speculating. BoT know the culprits yet are quiet!

 

[Fx Trader]

Speculators will always come up with excuses I.e. the dollar is strong globally and therefore the local unit has to depreciate. This does not apply to tanzania since its capital account until recently was closed. Wake up BoT!

 

[KVM]

The local currency has depreciated by tzs 25 in the last month month only! Its currently trading at 1680 against 1690! Why is BoT quiet? Inflation will remain above their medium term target of 5% and probably head to double digits soon if the trend is not checked immediately.
Which fundamentals are driving the tzs higher? Or its pure speculation?

Speculation is one issue but my observation for some time has been that BOT does not like the TZS to diverge far from the status quo with the Kenyan Shilling. This could be so in order to protect the tourism sector.

 

[Fx Trader]

I tend to disagree. The reason for the decline in tourism revenue in kenya is terrorism and therefore any amount of devaluation will not realize material results. In addition, the CBK has intervened with over usd 200m in the past 3 weeks which clearly suggests that they are not comfortable with the current levels.

The BoT has always been reactive and not pro active.