The Bank of Tanzania has sold $20 million in the Interbank Foreign Exchange Market (IFEM) in a targeted intervention aimed at boosting foreign currency liquidity.
The auction, conducted on March 16, 2026 under the Foreign Exchange Intervention Policy of 2023, attracted strong demand from commercial banks, according to a public notice issued by the central bank.
Data from the auction show that total bids reached $25.5 million, exceeding the amount offered, with 15 out of 20 participating banks successfully allocated funds.
The weighted average exchange rate for the auction was Sh2,592.85 per US dollar, while bids ranged from Sh2,580 to Sh2,596. The highest accepted rate stood at Sh2,596, with the lowest accepted at Sh2,590, indicating a relatively narrow pricing spread among market participants.
The intervention reflects continued efforts by the central bank to stabilise the foreign exchange market and ensure adequate liquidity amid sustained demand for the US dollar.
The oversubscription of the auction signals persistent demand for foreign currency, particularly from import-dependent sectors of the economy.
The notice was issued by the Directorate of Financial Markets at the central bank.
