Cotton exports from Tanzania converted into boosts for the East African nation's monetary unit when proceeds from the soft fiber entered the market, Bloomberg reports.
As the African continent's second largest economy, Tanzania is watching the shilling appreciate as high as 0.4 percent by early afternoon in Dar es Salaam, the nation's commercial capital. The largest economy in Africa is that of South Africa.
"Some proceeds came in from the cotton sector, because the exporting season is now beginning," trader Eric Chijoriga with National Bank of Commerce told the news service. "This stabilized the shilling and caused a slight appreciation. The market has however been mostly quite, with no big deals."
At 10:08 a.m. on Wednesday, cotton futures gained 3.51 percent, a 3.64 cent climb to $1.0749 per pound.
Reuters reports the East African nation is preparing to spend the equivalent of nearly $742 million on projects that will address the nation's troubles with energy shortages. The energy and minerals minister delivered a presentation earlier this week to parliament outlining plans to acquire loans from China so it will finance a natural gas pipeline.
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