Tanzania’s financial markets closed the week to 23 October 2026 with Interbank Foreign Exchange Market turnover more than tripling to USD 60.80 million, from USD 19.70 million a week earlier.
The Bank of Tanzania (BOT) released the figures on 26 October 2026 in its ninth Domestic Financial Markets Weekly Report, a publication launched in September 2026 and issued weekly.
The report consolidates foreign exchange, money market and government securities data for the trading week from 19 to 23 October 2026, alongside monthly and fiscal-year trend charts.
Government Securities
Outstanding Government Securities stood at TZS 34,217.52 billion, comprising Treasury bonds worth TZS 30,537.77 billion, or 89.25%, and Treasury bills worth TZS 3,679.76 billion, or 10.75%.
The Treasury bills auction No. 1209, held on 21 October 2026, offered the 35, 91, 182 and 364-day tenors and attracted 88 bids, of which 65 succeeded.
Investors tendered TZS 457.58 billion against an offered amount of TZS 388.70 billion, an oversubscription of TZS 68.88 billion, with total allotment reaching TZS 360.90 billion.
The weighted average yields came in at 3.5379% for the 35-day tenor, 3.6357% for the 91-day, 5.5712% for the 182-day and 6.1342% for the 364-day.
Demand concentrated at the long end, where the 182-day and 364-day tenors were oversubscribed, while the 35-day and 91-day tenors drew bids below the amounts offered.
Banks accounted for the entire auction, submitting all subscriptions and receiving the full allotment, with no other investor category taking part in the sale.
Banks held the largest share of outstanding stock at 34.43%, worth TZS 11,780.30 billion, followed by Pension Funds at 29.70%, worth TZS 10,162.80 billion.
Retail Investors held 17.70% worth TZS 6,055.95 billion, Collective Investment Schemes and other official entities 8.06% worth TZS 2,757.91 billion, and Insurance Companies 7.23% worth TZS 2,475.06 billion.
The Bank onboarded 4,015 new clients in the current fiscal year, lifting the total number of registered investors in government securities to 35,517.
The next government securities auction is scheduled for Wednesday 28 October 2026, when a 20-year Treasury bond will be offered under the issuance calendar.
Foreign Exchange Market
The shilling edged down 0.14% over the week to close at TZS 2,636.74 against the US dollar, from TZS 2,633.12 the previous week.
Turnover on the Interbank Foreign Exchange Market rose to USD 60.80 million from USD 19.70 million a week earlier, the sharpest movement recorded in the period.
Retail foreign exchange transactions eased to USD 575.68 million from USD 604.89 million the previous week, reflecting lower activity across most sectors.
Trade led retail turnover at USD 172.34 million, followed by Oil & Energy at USD 80.55 million and Agriculture at USD 78.09 million.
Mining turnover more than halved to USD 35.84 million from USD 74.18 million, as the sector’s foreign currency purchases fell to USD 26.08 million from USD 65.77 million.
Daily retail foreign exchange transactions averaged USD 125.79 million over the past month, with sales averaging USD 61.48 million and purchases averaging USD 64.31 million.
Against other currencies the shilling closed at TZS 3,525.85 to the British Pound Sterling, TZS 2,952.36 to the Euro and TZS 395.06 to the Chinese Yuan.
Money Market
The Interbank Cash Market 7-day Weighted Average Rate closed the week at 6.59%, down from 6.68% recorded at the close of the previous week.
Total 7-day trading volume declined to TZS 587.45 billion from TZS 812.65 billion recorded in the preceding week, pointing to thinner interbank liquidity.
The 7-day weekly WAR averaged 6.42%, sitting 17 basis points above the Central Bank Rate (CBR) of 6.25% and inside the corridor of 4.75% to 7.75%.
The Bank injected TZS 774.96 billion through 7-day reverse repurchase agreements at the CBR of 6.25%, down from TZS 892.50 billion in the preceding week.
Bank of Tanzania Monetary Policy Framework
BOT adopted an interest rate based monetary policy framework in January 2024, replacing the monetary targeting regime under which it previously steered reserve money.
Under that framework the Central Bank Rate is the policy rate, while the 7-day interbank cash market rate serves as the operating target steered towards it.
The main instruments include repurchase agreements, 35-day and 91-day Treasury bills, the statutory minimum reserve requirement, and purchases or sales of foreign currency in the interbank market.
The Monetary Policy Committee maintained the CBR at 6.25% for the fourth quarter of 2026, with GDP growth projected at 7.2%, driven by agriculture, construction, mining and tourism.
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