Africa-Press – Tanzania. THE Bank of Tanzania (BoT) has injected 15m US dollars into the Interbank Foreign Exchange Market (IFEM) in a move aimed at easing liquidity pressures and supporting stability in the foreign exchange market.
In a public notice, the central bank said the intervention was conducted in accordance with its Foreign Exchange Intervention Policy of 2023.
The dollars were sold through an auction that cleared at a weighted average exchange rate of 2,449.18 per US dollar.
The auction attracted strong interest from commercial banks, with total bids amounting to 17m US dollars against an offered amount of 10m US dollars.
Of the bids submitted, 15m US dollars was successfully allocated, reflecting sustained demand for foreign currency in the market.
Data from the auction show that the highest bid rate was 2,450/- per dollar, while the lowest stood at 2,398/-.
The lowest accepted bid was 2,443.50/-.
A total of 19 banks participated in the auction, with 17 banks having their bids accepted.
The BoT said the intervention was intended to provide liquidity and ensure orderly conditions in the foreign exchange market, amid ongoing demand for dollars from key sectors of the economy.
The central bank has repeatedly stated that its market interventions are designed to smooth excessive volatility rather than to fix the exchange rate.
The notice was issued by the Directorate of Financial Markets, reaffirming the BoT’s commitment to maintaining stability in the country’s financial system while allowing market forces to play a central role in determining the value of the shilling.
