Dar es Salaam. The Bank of Tanzania (BoT) has intervened in the Interbank Foreign Exchange Market (IFEM) by selling $25 million through an auction, as part of its efforts to support monetary policy objectives.
A public notice issued by the BoT’s directorate of Financial Markets on March 27, 2025 the intervention was conducted in line with the Foreign Exchange Intervention Policy, 2023.
The auction was executed at a weighted average exchange rate of Sh2,663.16 per US dollar.
The results of the auction indicate that while the total amount offered stood at $25 million, the tendered amount reached $75.25 million, highlighting strong demand for foreign currency.
“Eight banks were successful in securing bids from a total of 25 participants,” the public notice says.
The highest bid rate recorded during the auction was Sh2,670.00 per USD, while the lowest bid rate stood at Sh2,640.00.
The highest bid rate accepted was Sh2,670.00, whereas the lowest bid rate accepted was Sh2,658.20.
The central bank’s move is part of broader efforts to maintain stability in the foreign exchange market by managing liquidity and exchange rate fluctuations.
This intervention aligns with BoT’s mandate to ensure a sound monetary and financial system in the country.
Market analysts observe that the auction serves as a measure to provide liquidity and stabilise the Tanzanian shilling against major foreign currencies amid prevailing economic conditions.
The BoT has remained proactive in regulating the forex market to curb excessive volatility and sustain investor confidence.
The intervention comes as Tanzania continues to navigate global economic uncertainties, with the central bank maintaining its commitment to fostering macroeconomic stability through strategic monetary policies.
