Tanzania’s financial markets closed the week to 11 September 2026 with a Treasury bills auction drawing bids worth TZS 690.50 billion against an offered amount of TZS 288.70 billion, an oversubscription of TZS 401.80 billion.
The Bank of Tanzania (BOT) published the figures on 14 September 2026 in the third issue of its Domestic Financial Markets Weekly Report, a publication it launched earlier this month and now issues every week.
The report consolidates foreign exchange market, money market and government securities data for the trading week that ran from 7 to 11 September 2026 into a single release, alongside charts of monthly and fiscal-year trends.
Government Securities
The Treasury bills auction No. 1206, held on 9 September 2026, offered the 35-day, 91-day, 182-day and 364-day tenors and attracted 124 bids, of which 49 were successful.
Investors tendered TZS 690.50 billion against an offered amount of TZS 288.70 billion, an oversubscription of TZS 401.80 billion, with the full offer of TZS 288.70 billion allotted.
The 364-day tenor drew the strongest demand, attracting TZS 336.50 billion against an offer of TZS 89.00 billion for a bid-to-cover ratio of 3.78x and a weighted average yield of 6.4735%.
The 182-day tenor recorded a bid-to-cover ratio of 2.32x on tenders of TZS 185.00 billion and cleared at a weighted average yield of 4.9248%.
The 91-day tenor returned a bid-to-cover ratio of 1.57x at a weighted average yield of 3.4222%, while the 35-day tenor was covered 1.18x at a weighted average yield of 2.2941%.
Banks accounted for the entire auction, submitting 100.00% of subscriptions and receiving 100.00% of the allotment worth TZS 288.70 billion.
Outstanding Government Securities stood at TZS 33,227.33 billion, comprising Treasury bonds worth TZS 29,807.68 billion, or 89.71% of the total, and Treasury bills worth TZS 3,419.65 billion, or 10.29%.
Banks held the largest share of that stock at 33.47%, worth TZS 11,121.02 billion, followed by Pension Funds at 30.30%, worth TZS 10,067.55 billion.
Retail Investors held 17.63% worth TZS 5,859.56 billion, Collective Investment Schemes and other official entities 8.16% worth TZS 2,710.31 billion, and Insurance Companies 7.56% worth TZS 2,510.85 billion.
The Bank onboarded 2,143 new clients in the current fiscal year, lifting the total number of registered clients in government securities to 33,645.
The next government securities auction is scheduled for Wednesday 16 September 2026, when a 5-year Treasury bond will be offered in line with the issuance calendar.
Foreign Exchange Market
The shilling held broadly stable, firming 0.04% over the week to close at TZS 2,637.97 against the US dollar, from TZS 2,638.96 at the end of the previous week.
Turnover on the Interbank Foreign Exchange Market (IFEM) fell to USD 27.30 million from USD 35.05 million a week earlier, extending the decline in interbank volumes.
Retail foreign exchange transactions decreased to USD 535.00 million from USD 668.24 million recorded in the previous week, a fall of USD 133.24 million.
Trade accounted for the largest share of retail turnover at USD 169.71 million, followed by Oil & Energy at USD 86.57 million and Individual Retail Customers at USD 80.24 million, together representing USD 336.52 million.
Mining recorded the sharpest sectoral decline, with turnover more than halving to USD 44.35 million from USD 114.70 million as its foreign currency purchases fell to USD 36.33 million from USD 96.80 million.
Daily retail foreign exchange transactions averaged USD 133.69 million over the past month, with sales averaging USD 66.83 million and purchases averaging USD 65.94 million.
Against other currencies the shilling closed at TZS 3,563.63 to the British Pound Sterling, TZS 3,062.94 to the Euro, TZS 393.35 to the Chinese Yuan and TZS 20.37 to the Kenyan Shilling.
Money Market
The Interbank Cash Market (IBCM) 7-day Weighted Average Rate (WAR) closed the week at 6.75%, up from 6.72% recorded at the close of the previous week.
Total 7-day trading volume increased to TZS 654.35 billion from TZS 597.85 billion recorded in the preceding week, reversing the prior week’s decline.
The 7-day weekly WAR averaged 6.48%, sitting 23 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 654.50 billion through 7-day reverse repurchase agreements at the CBR of 6.25%, down from TZS 756.50 billion injected in the preceding week.
Bank of Tanzania Monetary Policy Framework
BOT adopted an interest rate based monetary policy framework in January 2024, ending the monetary targeting regime under which it had previously managed the growth of reserve money.
Within that framework the Central Bank Rate functions as the policy rate, and the 7-day interbank cash market rate is the operating target that the Bank guides towards it through daily operations.
Its principal instruments include repurchase agreements, 35-day and 91-day Treasury bills, the statutory minimum reserve requirement, and the purchase or sale of foreign currency on the interbank market.
The Monetary Policy Committee set the CBR at 6.25% for the third quarter of 2026, and the money market rates reported above are measured against that policy rate and its 4.75% to 7.75% corridor.
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