BY DIRAMAKINI
THE Bank of Tanzania (BoT) has intervened in the Interbank Foreign Exchange Market (IFEM) in line with its Foreign Exchange Intervention Policy of 2023, with the objective of enhancing liquidity in the foreign exchange market.
During the intervention, the Bank sold USD 47.25 million through a competitive auction at a weighted average exchange rate of TZS 2,561.44 per US dollar.
According to the auction results, the amount initially offered was USD 30 million. However, due to strong market demand, the total amount tendered and subsequently accepted reached USD 47.25 million.
A total of 29 banks participated in the auction, and all participating banks were successful, indicating robust demand and healthy competition in the foreign exchange market.
The highest bid rate recorded during the auction was TZS 2,610 per US dollar, while the lowest bid rate stood at TZS 2,538. These same rates were also accepted in the final allocation.
The intervention forms part of the Bank of Tanzania’s ongoing efforts to maintain stability in the foreign exchange market and ensure adequate availability of foreign currency to support economic activity.
