Macroeconomic Forecast Tanzania

October 2007 | Macroeconomic Forecasts

The Tanzanian shilling's recent rapid appreciation (strengthening by 7.2% to at one point trade at TZS1,151/US$ on October 31) will bode well for reigning in inflation, which crept up to 8.3% y-o-y in September, following a rise in food prices, but is likely to impact the competitiveness of Tanzanian exports. Because lower export sales could worsen the country's already large current account deficit, the Bank of Tanzania may intervene and purchase shillings to drive the value back

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