DAR ES SALAAM: Tanzania's current account deficit widened by 3.6 percent in the year to May mostly due to an increase in the value of oil imports to east Africa's second-largest economy, its central bank said on Saturday.
Below are highlights from the Bank of Tanzania's report:
In the year to May, the current account deficit widened to $2.6 billion from $2.53 billion a year ago.
Imports of goods and services rose by 18.6 percent to $9.71 billion in the period from $8.19 billion a year before, mostly due to a rise in oil prices at the world market.
Oil imports increased to $2.064 billion in the year to May, compared with $1.808 billion a year earlier.
Gross official foreign exchange reserves held by the central bank rose to $3.591 billion, or 4.4 months of import cover, from $3.458 billion a year earlier.
The average inter-bank interest rate stood at 2.36 percent in May from 1.80 percent in April.
The average deposit rate stood at 1.46 percent in May, down from 1.64 percent in April, while lending rates were at 15.28 percent, down from 15.41 percent a month earlier.
Tanzania's national debt decreased to $11.408 billion in the year to May from $11.455 billion a month earlier.
Gold, the country's top foreign exchange earner, fetched $1.693 billion in the year to May, a 16.1 percent increase from a year ago due to higher world gold prices.
The price of gold rose to an average of $1,513.00 per troy ounce in the year to May, a 2.2 percent rise from a year ago. Tanzania is Africa's fourth-largest gold producer.
Tourism earnings increased to $1.341 billion from $1.190 billion a year ago, helped by enhanced tax collection.
Revenue collection in the month of May amounted to 442.1 billion shillings, representing 93.2 percent of the target.
Earnings from traditional exports tobacco, cotton, coffee, cashew nuts and tea increased 54.3 percent to $701.6 million, largely due to an increase in the prices and volumes of exports of coffee, tobacco and cashew nuts.
Credit to the private sector grew at an annual rate of 24.6 percent in May from 13.7 percent recorded.
Copyright Reuters, 2011
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