Tanzania’s shilling headed for the strongest close in a week against the dollar after the central bank of East Africa’s second biggest economy’s sold the U.S. currency to curb the shilling’s decline to a 17-year low. The shilling appreciated as much as 0.3 percent to 1,586.35 per dollar and traded 0.2 percent stronger at 1,588.5 by 12:10 p.m. in Dar es Salaam, the commercial capital. A close at this level would be the highest since July 27. “We have seen the Bank of Tanzania come in today to sell dollars,” Yonoh Mtegule, senior economist at National Bank of Commerce Ltd., Absa Group Ltd. (ASA)’s Tanzanian unit, said by phone, without providing further details. Tanzania’s central bank regularly intervenes in the market, selling $80 million and $120 million dollars a month to stabilize the shilling, according to information on its website. The central bank declined to provide more detail on currency sales, an official who didn’t want to be named said by phone today. Tanzania’s shilling has weakened 5.2 percent against the dollar over the past six months, making it the fourth worst- performing currency in Africa after the Kenyan and Ugandan shillings and Sudan’s pound. It reached 1,632.9 on July 5, the weakest level since at least October 1994, as inflation accelerated to 10.9 percent in June, the fastest pace in 14 months, on higher food and energy costs. To contact the reporter on this story: David Malingha Doya in Kigali via Nairobi at pmrichardson@bloomberg.net. To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

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