The Bank of Tanzania (BoT) has sold USD 30,250,000 to commercial banks in the Interbank Foreign Exchange Market (IFEM) to ensure there is enough foreign currency available and to protect the value of the Tanzanian Shilling.
The recent auction revealed strong demand for US Dollars, with requests from banks far exceeding the amount offered by the central bank. A total of 26 banks participated, of which 21 successfully secured dollars.
Bids ranged from TZS 2,450 to TZS 2,470 per USD, while the weighted average rate – the average price at which the BoT sold the dollars – was TZS 2,469.96.
This intervention is important for citizens because it helps prevent shortages of dollars needed by businesses and importers, ensuring that essential goods continue to reach Tanzanian markets.
By selling dollars, the BoT also helps protect the Shilling from losing value too quickly, which keeps prices of imported goods more stable and predictable, benefiting households and businesses alike.
The weighted average rate of TZS 2,469.96 reflects the real market value of the Shilling during this auction.
By stepping in at this moment, the Bank of Tanzania demonstrates its commitment to maintaining economic stability, supporting trade, and safeguarding the everyday interests of Tanzanians.
