Shilling holds firm against US dollar

DAR ES SALAAM: THE Tanzanian shilling has maintained stability against the US dollar, with the currency trading at 2,654/- per dollar under the Bank of Tanzania (BoT) reference rate on Sunday.

The central bank placed its dollar buying rate at 2,628/-, while commercial banks quoted the US currency at varying rates.

CRDB Bank bought the dollar at 2,600/- and sold it at 2,680/-, while NMB Bank quoted 2,595/- for buying and 2,675/- for selling.

The difference between buying and selling rates means a customer selling one dollar to CRDB would receive 2,600/-, while one buying the currency would pay 2,680/-.

At NMB, the corresponding rates were 2,595/- and 2,675/-.

The shilling’s performance against the dollar remains significant for businesses involved in international trade, particularly importers whose costs are directly affected by exchange rate movements.

The BoT reference rate for the euro stood at 3,013/- for buying and 3,043/- for selling. CRDB quoted the euro at 2,881/- for buying and 3,181/- for selling, while NMB’s rates stood at 2,859/- and 3,158/-, respectively.

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For regional currencies, the BoT reference rate placed the Kenyan shilling at about 20/- per shilling, while the Ugandan shilling was quoted at 0.66/- for buying and 0.67/- for selling.

CRDB bought the Kenyan shilling at 16.93/-, while NMB quoted 17.80/-.

For the Ugandan shilling, CRDB quoted 0.5960/- for buying and 0.8643/- for selling.

Exchange-rate movements remain an important consideration for companies settling overseas payments, as fluctuations in the value of the shilling can influence the cost of imports and other international transactions.

For businesses engaged in cross-border trade, the dollar remains particularly important because of its widespread use in international payments.

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