Dar es Salaam. The Bank of Tanzania (BoT) has sold an additional USD 20 million in the Interbank Foreign Exchange Market (IFEM) to boost liquidity and stabilize the local foreign exchange market, following the sale of USD 15 million last week.
In a public notice issued on October 27, 2025, the central bank said the intervention was conducted under its Foreign Exchange Intervention Policy of 2023, which empowers the BoT to act whenever market imbalances threaten stability.
“The aim of this auction was to create an avenue for providing liquidity in the foreign exchange market,” the statement said.
According to the notice, the USD 20 million was sold through an auction at a weighted average exchange rate of TZS 2,465.13 per US dollar.
The auction attracted significant interest, with banks tendering a total of USD 29.5 million, though only USD 20 million was successfully allocated. A total of 23 banks participated, compared to 24 in last week’s auction, while 14 banks received allocations.
The results showed the highest bid rate at TZS 2,471.00, while the lowest accepted bid rate was TZS 2,457.00.
Recently, Tanzania has recorded a notable improvement in dollar liquidity compared to the past two years, a development attributed to effective monetary and fiscal measures implemented by the authorities.
