BY DIRAMAKINI
THE Bank of Tanzania (BoT) has sold USD 20 million in the Interbank Foreign Exchange Market (IFEM) through a competitive auction as part of efforts to enhance liquidity and maintain stability in the country’s foreign exchange market.
According to a public notice issued by the central bank, the intervention was conducted in line with the Foreign Exchange Intervention Policy of 2023. The auction recorded a weighted average exchange rate of TZS 2,575.22 per US dollar.
The central bank said the primary objective of the auction was to provide additional liquidity in the foreign exchange market and support the smooth functioning of interbank foreign currency trading.
During the auction, the offered amount stood at USD 20 million, while bids submitted by participating banks reached USD 21.25 million. However, the successful allocation remained at the offered amount of USD 20 million.
The results further indicate that the highest bid rate was TZS 2,586 per US dollar, while the lowest bid rate stood at TZS 2,560 per US dollar. These rates also represented the highest and lowest accepted bids.
A total of 13 banks participated in the auction, with all of them successfully allocated foreign exchange in the process.
