Dar es Salaam. The Bank of Tanzania (BoT) has intervened in the Interbank Foreign Exchange Market (IFEM) by auctioning $30 million, a move aimed at stabilising the exchange rate and ensuring monetary policy objectives are met.
A statement released by the BoT said the auction, conducted on March 17 2025 through the automated FX Auction system, recorded a weighted average exchange rate of Sh2,646 per US dollar.
The highest bid rate accepted stood at Sh2,695, while the lowest bid rate accepted was Sh2,630.
“A total of 18 banks participated in the auction, with 12 successfully securing allocations,” the statement said.
This intervention comes against a backdrop of a stable macroeconomic outlook, with the central bank projecting muted exchange rate pressures in early 2025.
In a recent interview BoT Governor, Emmanuel Tutuba, attributed the stable outlook to increased agricultural output, ongoing infrastructure projects, and prudent fiscal policies.
The forex auction also aligns with BoT’s broader monetary strategy to ensure liquidity in the market while maintaining inflation expectations below five percent.
The central bank has kept its policy rate steady at six percent, reinforcing investor confidence and supporting economic growth projected at 5.7 percent in the first quarter of 2025.
Tanzania’s shilling has remained relatively stable in recent months, bolstered by improved export earnings from tourism, gold, and agricultural commodities.
In 2024, the country’s exports grew to 20 percent of GDP, contributing to a decline in the current account deficit.
The forex auction is part of BoT’s ongoing efforts to maintain market stability amid global uncertainties, ensuring that the Tanzanian economy remains resilient in 2025.
