In a significant step toward modernizing Tanzania’s financial sector and aligning with international market standards, the Bank of Tanzania (BoT) has launched the Electronic Matching System (EMS) for the Interbank Foreign Exchange Market (IFEM).
The introduction of the system marks a new era in the country’s foreign exchange market by providing a technology-driven platform designed to improve transparency, competitiveness, and price discovery.
The EMS replaces the traditional over-the-counter negotiation process with a more structured and rule-based trading environment.
Speaking during the launch, BoT Director of Financial Markets, Emmanuel Kakuru, said the system forms part of the central bank’s broader efforts to strengthen the country’s financial market infrastructure and ensure Tanzania keeps pace with global best practices.
He noted that the EMS will enhance market liquidity, improve the efficiency of foreign exchange transactions, and strengthen confidence among market participants through greater transparency and operational effectiveness.
According to the central bank, 29 out of Tanzania’s 32 commercial banks have already joined the platform, while the remaining three are finalizing the necessary procedures before becoming fully operational.
The system also enables major exporters to participate directly in the market, further broadening participation and deepening the foreign exchange market.
BoT Deputy Governor Yamungu Kayandabila described the EMS as a key milestone in the ongoing transformation of Tanzania’s financial sector, emphasizing that it will significantly improve transparency, efficiency, and market-based price discovery in foreign exchange trading.
Meanwhile, Catherine Mwita, Vice President of the ACI Financial Markets Association (ACI FMA), said the new system is expected to increase market liquidity and strengthen Tanzania’s position as a competitive and modern financial market within the region and beyond.
The launch of the EMS underscores Tanzania’s commitment to leveraging modern technology to strengthen financial market stability, enhance investor confidence, and support sustainable economic growth through a more efficient and transparent financial system.
