THE overall balance of payments in the year ending June this year recorded a surplus of US$ 449.1 million (about 718.56bn/-) compared to US$ 209.1 million (334.56) of the corresponding period in 2012.
The Bank of Tanzania (BoT) said in its monthly economic review for July that the outstanding performance emanated from the net inflows recorded in capital and financial accounts.
Consequently, the gross official reserves amounted to US$ 4,353.5 million (6.96tri/-) sufficient to cover 4.3 months of projected imports of goods and services excluding those financed by foreign direct investment, the bank said.
During this period, traditional cash crops, manufactured goods exports as well as receipts from travel and transportation services performed well. "Exports of goods and services increased by 2.8 per cent while imports declined by 0.4 per cent," stated the report.
The outturn led to narrowing of the current account deficit by 2.2 per cent to US$ 4,173.6 million (6.67tri/-) compared to a deficit of US$ 4,267.2 million (6.83tri-) of the previous period.
The value of exports of goods and services was US$ 8,283.8 million (13.25tri/-) compared with US$ 8,055.1 million (12.88tri/-) in June 2012. The increase emanated from traditional and manufactured goods exports, as well as travel and transportation receipts.
The value of traditional exports increased mainly on account of higher export volumes of coffee and cotton associated with good weather conditions in the growing areas coupled with good prices offered in the preceding years.
"It should be noted that since 2010 average unit prices of most traditional exports have maintained an upward trend, which acted as incentive to producers," it stated.
However, the year ending June saw a decline of cloves in both volumes exported and average unit prices due to cyclical factors in production of the crop in Zanzibar. Likewise, the decline in average unit export price was associated with expectations of an increase in clove production in major producing countries.
Also in the period under review, the value of non-traditional exports notably gold declined, following a decrease in export volume and average unit export price.
The volume of gold exported was about 36 tonnes compared with about 40 tonnes recorded in the year ending June 2012, while average unit export price declined by 3.6 per cent to US$ 1,610.7 (2.57m/-) per troy ounce.
Nonetheless, gold and manufactured goods continued to account for the largest share in total non-traditional exports. The value of diamond exports rose following an increase in production associated with the completion of major rehabilitation of the Williamson Diamond Mine treatment plant.