Tanzanian Shilling Holds Steady on Back of Agricultural Commodity Exports

The Tanzanian shilling continues to hold steady between TSH 2330-2340 against the US dollar due to cash inflows from mining and commodity exports, especially tobacco, cotton and pulses. This steady trend is expected to continue into the weeks ahead as the tobacco, pulses and cotton seasons continue. The local currency stability is poised to cushion shocks from high global commodity prices thus absorbing inflation shocks of imported goods. Producers of agricultural products are hoping that the currency stability will keep input and production costs in check as global inflation is on the rise.