DAR ES SALAAM, Oct. 7 -- SHILLING has firmed nearly 8.0 per cent against the US dollar year-to-date, buoyed by foreign reserves now topping 6.0 billion US dollars, offering five months worth of import cover.

The currencys appreciation trend reflects growing macroeconomic stability and improved investor confidence in Tanzanias external position.

An economics and finance analyst Mr Kelvin Msangi cautioned that a sustained 8.0 per cent appreciation of the shilling could pose risks to the export sector, with Bank of Tanzania estimates suggesting it may reduce the sectors contribution to GDP by up to 0.4 percentage points.

“Yet the real story lies in the arithmetic of stability. The shillings strength reduces import costs but trims ex...