The Bank of Tanzania (BoT) has intervened in the interbank foreign exchange market, selling $45 million through an auction as part of efforts to ease liquidity pressures and stabilise the market.
In a public notice issued on December 19, 2025, the central bank said the intervention was conducted in line with its Foreign Exchange Intervention Policy of 2023.
The dollars were sold at a weighted average exchange rate of TZS 2,449.80 to the US dollar, signalling continued pressure on foreign exchange demand.
Data from the auction show that demand significantly exceeded supply, with banks tendering bids worth $59.75 million against an offered amount of $25 million, before BoT accepted $45 million.
A total of 25 banks participated in the auction, with 16 successful bidders, reflecting broad demand across the banking sector.
The highest bid rate recorded was Sh2,450 per dollar, while the lowest was Sh2,441, with accepted bids ranging between Sh2,448.83 and Sh2,450.
The spread points to tight market conditions and persistent demand for hard currency, largely driven by import payments, debt servicing and seasonal business needs.
BoT’s intervention underscores the central bank’s active role in managing short-term imbalances in the foreign exchange market without abandoning the market-determined exchange rate regime.
By injecting liquidity, the move is intended to smooth volatility, support orderly market functioning and reduce pressure on the shilling.
The sale comes amid heightened scrutiny of forex availability, with businesses and banks closely watching central bank actions for signals on liquidity management and currency stability.
The intervention was conducted by the Directorate of Financial Markets, reaffirming BoT’s commitment to maintaining stability in the foreign exchange market while supporting broader economic activity.