Business
Tanzania, an African country on the rise: Growth expected at 6 percent
“However, there are upside risks associated with instabilities in the Middle East and euro zone, which may exert pressure on inflation,” the bank said, adding it would take additional measures to rein in core inflation and ensure financial sector stability.
The Tanzanian shilling hit a new all-time low of 1,850 against the dollar on October 28, but has bounced back after the central bank pumped dollars into the market. The shilling was trading at 1,588/1,598 at 1138 GMT (05:38 EST) on Wednesday.
In the second half of 2011, Tanzania’s current account deficit widened to US$2.7 billion from US$834.5 million previously, primarily due to the rise in global oil prices, and a surge in imports of oil and machinery, the bank said.
The country’s gross official reserves rose to US$3.76 billion, or 4.1 months of import cover, from US$3.59 billion in June. The bank said it plans to raise the reserves to 4.5 months of import cover during the 2011/12 financial year.
