The Bank of Tanzania has stepped into the Interbank Foreign Exchange Market (IFEM), purchasing USD 7 million in an auction aimed at easing short-term volatility and supporting stability of the Tanzanian shilling.
In a public notice issued on February 27, 2026, the central bank said the move was undertaken in line with its 2023 Foreign Exchange Intervention Policy, which allows it to intervene when necessary to maintain orderly market conditions.
The dollars were bought at a weighted average exchange rate of TZS 2,556.96 per US dollar. The auction attracted strong interest from commercial banks, with a total of USD 10.75 million tendered more than double the USD 5 million initially offered. Ultimately, USD 7 million was successfully allotted.
The highest bid rate during the auction reached TZS 2,615 per dollar, while the lowest stood at TZS 2,500. However, the highest rate accepted by the central bank was TZS 2,580, with the lowest accepted rate remaining at TZS 2,500.
Fourteen banks participated in the auction, and 10 had their bids accepted, underscoring active engagement within the interbank market.
The intervention comes amid efforts by the central bank to smooth excess short-term fluctuations in the exchange rate of the shilling against major foreign currencies.
By mopping up excess demand pressures and guiding market expectations, the Bank signalled its readiness to act when necessary to safeguard macroeconomic stability and ensure continued confidence in the country’s financial system.
