Dar es Salaam, 10 February 2026 – The Bank of Tanzania (BoT) has intervened in the Interbank Foreign Exchange Market (IFEM), selling USD 15.75 million through an auction aimed at providing liquidity and stabilising the foreign exchange market.
According to a public notice issued by the BoT’s Directorate of Financial Markets, the intervention was conducted in line with the Foreign Exchange Intervention Policy, 2023.
Strong Demand from Banks
The auction attracted significant participation from the banking sector:
- Currency: USD
- Offered Amount: USD 15 million
- Tendered Amount: USD 27 million
- Successful Amount: USD 15.75 million
- Number of Participating Banks: 30
- Number of Successful Banks: 18
The fact that banks tendered USD 27 million against an initial offer of USD 15 million indicates strong demand for foreign currency liquidity within the market.
Exchange Rate Details
The auction results showed:
- Weighted Average Exchange Rate: TZS 2,572.56 per USD
- Highest Bid Rate: TZS 2,580.00
- Lowest Bid Rate: TZS 2,560.00
- Highest Accepted Bid: TZS 2,580.00
- Lowest Accepted Bid: TZS 2,570.00
The weighted average rate of TZS 2,572.56 reflects the market-clearing price determined through the competitive bidding process.
What This Means for the Market
The intervention is part of the central bank’s ongoing efforts to:
- Maintain orderly conditions in the foreign exchange market
- Address short-term liquidity pressures
- Support exchange rate stability
By supplying dollars into the interbank market, the Bank of Tanzania helps ease demand pressures and ensures smoother functioning of foreign exchange transactions among commercial banks.
Such interventions are a key monetary tool used globally by central banks to manage volatility and reinforce confidence in the financial system.
Source: Bank of Tanzania – Public Notice, 10 February 2026.
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