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                              TOL 330.00     TBL 1,800.00     TTP 510.00     TCC 1,640.00     SIMBA 1,780.00     SWISSPORT 650.00     TWIGA 1,340.00 -20.00     NICOL 305.00     DCB 360.00     KA 1,500.00     EABL 2,000.00     JHL 5,860.00    
LAST UPDATE: 24/9/2008 - 5:58PM EAT

Wednesday, September 24, 2008

A question on Foreign Exchange Rates

I just came a cross a seemingly simple question, but a very interesting one from Issa Michuzi's Website. In the post, a visitor who goes by the alias David Villa asks, are foreign exchange rates true indicators of economic standards? He goes on to explain that say you have country A whose economic level is in all respects higher than country B, should the exchange rate of A's currency compared to B's currency be higher?

None of the visitors to that post could adequately answer that querry, and I thought it would make for an interesting discussion topic here. Would economists and particularly experts in monetary policy, international trade, development economics, etc. help us out with this?
  • What determines the exchange rate of a given currency?

  • What is the measure of economic level and/or growth?

  • What is the relationship between economic level and forex rate (if any)?

Dar banks face post-IPO liquidity crunch

Traders at the Dar es Salaam Stock Exchange. The liquidity problem in banks echoes a similar situation last year when the government withdrew its deposits from commercial banks. Photo/LEONARD MAGOMBA

Tanzania’s financial markets are going through an acute liquidity crunch caused by the massive oversubscription of the recent initial public offers by the National Microfinance Bank (NMB) and the Dar es Salaam Community Bank.

All the money paid in by investors who applied for the shares is in the hands of the few receiving banks pending the allotment.More...

[SOURCE: The EastAfrican]

Treasury Bills Auction Summary - 17/9/2008

Economic Processing Zones (EPZs) up and kicking strongly

2008-09-24 09:14:23
By George Michael

Export Processing Zones (EPZs) are now fuelling and oiling domestic economy, according to reliable official sources.

Within its one and half years of operations, the government has issued 29 licenses of which 18 are for undertaking EPZs` related manufacturing operations, while 11 are for development of EPZs infrastructure. More...


ICF urges enhanced investment climate

Daily News; Tuesday,September 23, 2008 @20:03
AFRICAN governments have to improve their investment climate if wider economic and social progress is to be achieved, the Chief Executive Officer of the Investment Climate Facility for Africa (ICF), Mr Omari Issa, said on Monday at the UN High Level Event on Africa’s Development.

Addressing the government, Non Governmental Organizations (NGOs) and private sector representatives from all over the world, Mr Issa argued that Africa must achieve a sustainable economic growth of seven per cent per annum to reach the core MDG of halving the number of people living on less than a dollar a day by 2015

World meet on SMEs future opens in Dar tomorrow

Daily News; Tuesday,September 23, 2008 @20:01

A TWO-day international conference that will discuss the place of Small and Medium Enterprises in a globalised world economy opens in Dar es Salaam tomorrow.

The meeting co-ordinator, Dr Esther Ishengoma, told reporters delegates will review the fate of the SMEs sector in the international arena and explore strengths and weaknesses of the enterprises so that they remain flexible to adapt to changing market environments, particularly customer needs. More...


Tanzanite prices and demand 'stable'

By Citizen Reporter, Arusha

Stakeholders in the tanzanite industry say the price of the precious gemstone found only in Tanzania is stable and competitive on the world market.

They said in an interview here yesterday that demand for larger, better quality precious stone was still strong.

However, they admitted that there was a slight drop in price for smaller stones on the world market, but demand and prices for larger ones were still strong.
The stakeholders were reacting to reports that the price of tanzanite on the world market has dropped More...


Graft in Tanzania slightly worse: TI

By Rose Athumani

Tanzania took a slight knock in its efforts to combat corruption, dropping a few points in the 2008 global corruption rankings, according to a report released yesterday.

The country scored 3 points in the new rankings from 3.2 recorded last year by the global corruption watchdog, Transparency International (TI).

The drop means public perception of corruption in the country increased over the last year. The country remained just above the borderline of countries in which corruption was said to be rampant. More...


Business urges speed in Customs Union

By Zephania Ubwani, Arusha

The business community in East Africa has called for the speedy implementation of the EAC Customs Union to enable it to move forward.

A recent survey commissioned by the East African Business Council(EABC) shows that businesses in the region want the implementation expedited so that they can fully benefit from it. More...


Dar gets $200m more US grant

By Kagashe Beatus

The United States has increased its funding to Tanzania by $200 million (Sh240 billion), adding to the current assistance it gives the country.

The two governments signed five amendments to bilateral grant agreements in Dar es Salaam yesterday, increasing funding for existing programmes. More...


Cut VAT on cellphones, EA urged

By Samuel Kamndaya

High taxes are making cellphones expensive in East Africa.

To stem the trend, East African Community (EAC) member states should reduce value added tax (VAT) and import duties on mobile phones, Nokia East Africa general manager Gerald Brandjes said. More...


Fears allayed on GMOs in regional agriculture

By Bernard Muthaka, Citizen Correspondent, Kampala

A study by the Common Market for Eastern and Southern Africa (Comesa) has allayed fears that introducing genetic technology in agriculture may lead to market losses.

It indicates that even should such products be rejected, the decline in exports from the three East African countries would be insignificant. More...


The issue of genetically modified products has several implications ranging from ethical, health to financial reasons. Some may be for, some against it. As far as economic reasons go; On one hand, farmers may be able to obtain more produce in a smaller peace of land over a short period of time, but on the other there is fears that these products may not be readily acceptable in the regional market as COMESA's study suggests. What's your take on this?

Monday, September 22, 2008

BOA to extend more branches upcountry

Daily News; Friday,September 19, 2008 @00:04

BOA Bank will soon open new branches in Arusha and Mwanza regions to increase its coverage countrywide. The Bank's Marketing Manager, Mr Sudi Marungu, told reporters in Dar es Salaam on Wednesday shortly before 'Iftar' BOA hosted to its customers that the branches would help to improve its market share. More...


NMB workers go on countrywide strike

By Orton Kiishweko

Operations at the National Microfinance Bank, the country's largest bank, are expected to be paralysed today when more than 1,800 employees go on strike to force the Government to pay them lump sum payments in benefits.

A top Union official yesterday told The Citizen that the strike at the bank's 121 branches countrywide would commence at 8pm this morning should the management and the Government fail to sign a contentious memorandum of understanding by then. More...


New UN president criticises Bretton Woods institutions

By Erick Kabendera, New York

The UN General Assembly opened its 63rd session on Tuesday, with its new president criticizing the Bretton Woods institutions for their difficult policies on developing countries.

Father Miguel D?Escoto Brockmann, who becomes the first priest to hold that position, cited the International Monetary Fund and World Bank as being under the command of the United States and Europe and used as an instrument of domination.

Despite the institutions not being directly related to the UN, Fr D?Escoto said the world was against them being used as tools of control by big powers. More...


Africa's market share in trade falls, says report

By Erick Kabendera, New York

Africa has made little progress in trade despite two decades of trade liberalization that removed some barriers limiting its trade opportunities.

According to a report called Economic Development in Africa 2008, published by the UN Conference on
Trade and Development (UNCTAD), the continent?s market share fell from six per cent of world exports in 1980 to about three per cent in 2007. More...


All set for key business roundtable

By Vicent Mnyanyika

Tanzanian will host an international business conference next month to discuss means of maximising the country's investment potential.

President Jakaya Kikwete is expected to open the meeting organised by The Economist, a prominent international magazine.

A statement released yesterday said the conference to be held on October 6 and 7 in Dar es Salaam would involve the Government through its various ministries. More...
(Related post: http://uchuminafedha.blogspot.com/2008/08/economist-conference-in-tanzania.html