IBCM transactions drops to $1.5tri

The interbank cash market (IBCM) transactions have doubled to Tsh1.45 trillion from Tsh793.3 billion traded in the preceding month, latest data from the Bank of Tanzania (BoT) shows.
Transactions of 2 to 7-day tenure dominated, accounting for 60.9 per cent of total transactions.
Overnight placements in July of the IBCM interest rates eased to an aver- age of 3.20 per cent and 3.97 per cent from 4.32 per cent and 4.87 per cent recorded in the preceding month, respectively. The BoT’s report for Au- gust indicates that total volume of transactions in the interbank foreign exchange market (IFEM) has declined to $41.1 million compared with $49.3 million traded in the preceding month. The central bank participated in the market by selling $28.2 million, accounting for 68.1 per cent of total transactions. The shilling remained stable against the US dollar, trading at an average of Tsh2,308.96 per US dollar from Tsh2,305.10 per US dollar in the preceding month. On annual basis, the shilling recorded a margin- al depreciation of 0.4 per cent from Tsh2,300.42 per US dollar in July 2019. The report indicates that expenditure was Tsh1.6tril- lion in July 2020, of which recurrent expenditure amounted to Tsh1.2 trillion and development expenditure of Tsh437.6 billion. The central bank shows that development expenditure was financed by domestic resources, which ac- counted for 88.1 per cent.