Dar es Salaam. The Bank of Tanzania (BoT) has launched an Electronic Matching System (EMS) for the Interbank Foreign Exchange Market (IFEM), marking a significant step towards improving transparency, efficiency and liquidity in the country’s foreign exchange market.
The system, launched on June 8, 2026, will enable market participants to submit, match and execute foreign exchange transactions electronically.
Participants will include commercial banks and large exporters authorised by the central bank to trade through the platform.
Speaking during the launch, the Deputy Governor responsible for Economic and Financial Policies, Dr Yamungu Kayandabila, said the system would enhance transparency in the determination of foreign exchange rates and improve the overall efficiency of market operations.
“Through this system, we expect greater market transparency and improved efficiency in the determination of exchange rates. We also anticipate increased liquidity, stronger competition and enhanced efficiency in market operations,” he said.
Dr Kayandabila noted that the EMS would strengthen the central bank’s ability to monitor market activities.
He said the platform would help ensure that the foreign exchange market continues to operate in a stable and efficient manner while adhering to international best practices.
He added that the initiative forms part of broader efforts to modernise Tanzania’s financial markets and strengthen confidence among market participants.
Meanwhile, the Director of Financial Markets, Mr Emmanuel Akaro, said the platform would support anonymous trading. Under the arrangement, buy and sell orders will be matched automatically based on price-time priority.
He explained that the system will be used specifically for spot foreign exchange transactions involving the Tanzanian shilling and the United States dollar.
“The matching process will be conducted electronically and automatically, ensuring fairness, efficiency and improved price discovery within the market,” he said.
The launch comes as Tanzania continues to implement reforms aimed at strengthening the foreign exchange market and aligning it with global standards.
The country’s foreign exchange market has recorded substantial progress since the enactment of the Foreign Exchange Act of 1992.
Key milestones include the introduction of the 2023 Policy on the Participation of the Bank of Tanzania in the Interbank Foreign Exchange Market, which established a framework for the central bank’s involvement in the market and supported exchange rate stability.
Another major development was the adoption of the 2024 Interbank Foreign Exchange Market Code of Conduct.
The code incorporates 52 internationally recognised principles designed to promote transparency, integrity, professionalism and compliance with global best practices in foreign exchange trading.
The introduction of the EMS is expected to further strengthen market confidence and support the continued development of Tanzania’s financial sector.
