Tanzania’s foreign exchange reserves increased by 2.3 percent to $5.20 billion in August this year as compared to $ 5.092 billion recorded during the same period last year according to the Bank of Tanzania (BoT) Monthly Economic Review for September, 2023.
According to the Central Bank, the reserves were adequate to cover 4.7 months of projected imports of goods and services, which is above the country and the EAC benchmarks of at least 4 and 4.5 months respectively.
The report however said the effects of global shocks, notably the ongoing conflict in Ukraine, continue to impact external sector performance.
“Notwithstanding the shocks, the current account balance has improved, attributed by heightened seasonal earnings from tourism activities,” the report shows.
Tanzania’s current account deficit narrowed to $4.016 billion in August 2023, compared with $4.26 billion in recorded during the preceding year.
The value of export of goods and services amounted to $13.14 billion during August
2023, higher than $11.39 billion recorded during in the corresponding period in 2022, driven by services’ receipts and non-traditional exports, particularly minerals.
The export of non-traditional goods recorded growth of 5.6 percent, driven by minerals, particularly gold, and coal.
The value of coal exports increased to $226.8 million in August 2023 from $82.2 million recorded during the preceding corresponding period, owing to growing demand in the wake of supply shortages associated with the war in Ukraine.
“As for gold exports, the rise was largely due to both volume and price effects. Export of manufactured goods recorded modest growth, largely driven by fertilizers and glassware,” the report shows.
The export of traditional goods also increased to $808 million from USD 754.8 million, with all goods in the category recording increase, except cashew nuts and cotton.
“On a monthly basis, traditional goods worth $95.9 million were exported in
August 2023 compared with $70.5 million in a similar month in 2022,” the report shows.