DAR ES SALAAM, – The Bank of Tanzania (BoT) has intervened in the foreign exchange market by selling $25 million through an interbank auction, aiming to improve liquidity and stabilize the national currency.
The auction, conducted under the central bank’s 2023 Foreign Exchange Intervention Policy, attracted strong participation from commercial banks, which submitted bids totaling $28.5 million – exceeding the amount offered. Of the 21 banks that participated, 18 were successful in securing US dollars.
According to a public notice issued by the BoT’s Directorate of Financial Markets, the intervention was designed to “provide liquidity in the foreign exchange market” amid sustained demand for US dollars across various sectors of the economy.
The $25 million sold in Wednesday’s auction was cleared at a weighted average exchange rate of 2,443.82 Tanzanian shillings per US dollar. The highest accepted bid stood at 2,445 shillings, while the lowest accepted rate was 2,440.25 shillings.
The central bank stated that the intervention was necessary to “ensure orderly market conditions and maintain confidence among financial institutions operating in the forex market.”
This marks the latest in a series of interventions by the Bank of Tanzania, which has increased its presence in the Interbank Foreign Exchange Market (IFEM) as part of broader efforts to support market stability, enhance transparency, and ensure adequate supply of foreign currency.
