BY DIRAMAKINI
THE Central Bank of Tanzania (BoT) has participated in the Foreign Exchange Market (IFEM) in accordance with its 2023 policy to engage in the foreign exchange market, aimed at controlling the exchange rate fluctuations and enhancing the stability of the Tanzanian Shilling.
In a recent auction, the Bank sold a total of USD 7.00 million through a competitive bidding process. The accepted average exchange rate was TZS 2,556.96 per USD.
The main objective of this move was to mitigate short-term fluctuations in the exchange rate of the Tanzanian Shilling against foreign currencies, particularly the US Dollar.
According to the auction results, the announced amount was USD 5.00 million, while the total amount submitted by participants reached USD 10.75 million, indicating an increased demand in the market. However, the Central Bank accepted bids worth USD 7.00 million.
The highest bid price was TZS 2,615.00 per USD, while the lowest was TZS 2,500.00. The highest accepted price was TZS 2,580.00, and the lowest accepted price was TZS 2,500.00 per USD. A total of 14 banks participated in the auction, with 10 banks successfully winning their bids.
The Central Bank's participation in the auction is part of the implementation of monetary policies aimed at ensuring adequate foreign currency liquidity, improving the efficiency of the foreign exchange market, and safeguarding the stability of the national financial system.
