The Bank of Tanzania (BoT) has injected 20 million US dollars into the Interbank Foreign Exchange Market (IFEM) in an effort to ease pressure on foreign currency availability and support stability in the banking sector.
In a public notice issued on May 26, 2026, the central bank said the intervention was carried out in line with the Foreign Exchange Intervention Policy, 2023, through a competitive auction involving commercial banks.
The move comes at a time when demand for the US dollar remains high in the local market, with the auction attracting bids worth 28.75 million dollars—far above the amount offered by the central bank.
BoT sold the dollars at a weighted average exchange rate of Sh2,619.31 per US dollar. The highest bid rate recorded during the auction was Sh2,630, while the lowest stood at Sh2,610.
All 21 banks that participated in the auction were successful, highlighting the broad demand for foreign currency among financial institutions.
The central bank said the intervention was intended to increase liquidity in the foreign exchange market and ensure its smooth functioning.
Economists say such interventions are important in helping to stabilise exchange rate fluctuations, support import-dependent businesses and maintain confidence in the country’s financial system.
The auction was coordinated by BoT’s Directorate of Financial Markets as part of ongoing measures to safeguard macroeconomic stability and ensure adequate supply of foreign currency in the economy.
