Tanzania Shilling Closer to Equilibrium, IMF Says

The Tanzanian shilling has weakened to closer to its “equilibrium” after trading at too strong a level last year, the International Monetary Fund said.
The shilling has been weighed down by a strong U.S. dollar, high liquidity, seasonally low export income and high repatriation of corporate dividends, the IMF said in an e-mailed statement on Wednesday. The currency has lost a fifth of its value against the dollar since January, adding to last year’s 8 percent drop.
“The shilling, which was assessed to be somewhat overvalued in 2014, is now closer to equilibrium,” the Washington-based lender said.
East Africa’s second-biggest economy has been selling as much as $10 million a month to support the shilling, Finance Minister Saada Mkuya said on Sept. 3.

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