Tanzania’s financial markets closed the week to 4 September 2026 with the 10-year Treasury bond yield rising to 10.6924%, up from 10.3861% at the previous auction of the same tenor.
The Bank of Tanzania (BOT) released the figures on 7 September 2026 in it second Domestic Financial Markets Weekly Report, a publication it launched on 2 September 2026 and now issues weekly.
The report brings together foreign exchange market, money market and government securities data for the week in a single release, alongside charts of monthly and fiscal-year trends.
Government Securities
The 11.25% 10-year Treasury bond No. 711, maturing on 23 July 2036, attracted 165 bids at the auction held on 2 September 2026, of which 87 were successful.
Investors tendered TZS 364.96 billion against an offered amount of TZS 182.90 billion, an oversubscription of TZS 182.06 billion that produced a bid-to-cover ratio of 2.00x, with total allotment reaching TZS 149.60 billion.
The minimum successful price was 101.4576 and the weighted average price 103.3267, leaving the weighted average yield to maturity 30.63 basis points above the level recorded at the preceding auction of the same tenor.
Collective Investment Schemes took the largest share of the allotment at TZS 66.09 billion, equivalent to 44.18% of the total, from 20.57% of subscriptions.
Banks submitted 47.51% of subscriptions and were allotted TZS 43.14 billion, or 28.84% of the total, while Pension Funds received 19.04% of the allotment from 8.87% of subscriptions.
Individuals and Companies accounted for 10.70% of subscriptions and were allotted TZS 3.38 billion, representing 2.26% of the total, while Brokers submitted 9.34% of subscriptions and received no allotment.
Outstanding Government Securities stood at TZS 33,010.54 billion, comprising Treasury bonds worth TZS 29,807.68 billion, or 90.30% of the total, and Treasury bills worth TZS 3,202.86 billion, or 9.70%.
Banks held the largest share of that stock at 33.07%, worth TZS 10,916.62 billion, followed by Pension Funds at 30.42%, worth TZS 10,041.15 billion.
Retail Investors held 17.78% worth TZS 5,869.81 billion, Collective Investment Schemes and other official entities 8.20% worth TZS 2,706.84 billion, and Insurance Companies 7.61% worth TZS 2,511.66 billion.
The Bank onboarded 2,045 new clients in the current fiscal year, lifting the total number of registered investors in government securities to 33,547.
The next government securities auction is scheduled for Wednesday 9 September 2026, when Treasury bills will be offered in line with the issuance calendar.
Foreign Exchange Market
The shilling appreciated 0.16% over the week to close at TZS 2,638.96 against the US dollar, from TZS 2,643.26 at the end of the previous week.
Turnover on the Interbank Foreign Exchange Market (IFEM) rose to USD 35.05 million from USD 24.90 million a week earlier, while retail foreign exchange transactions increased to USD 668.24 million from USD 544.24 million.
Trade accounted for the largest share of retail turnover at USD 173.02 million, followed by Mining at USD 114.70 million and Oil & Energy at USD 110.79 million, together representing USD 398.51 million.
The mining sector’s foreign currency purchases nearly tripled to USD 96.80 million from USD 33.69 million a week earlier, the sharpest sectoral movement recorded in the period.
Daily retail foreign exchange transactions averaged USD 132.02 million over the past month, with sales averaging USD 65.14 million and purchases averaging USD 65.96 million.
Against other currencies the shilling closed at TZS 3,566.56 to the British Pound Sterling, TZS 3,067.53 to the Euro, TZS 392.76 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 6.72%, unchanged from the level recorded at the close of the previous week.
Total 7-day trading volume declined to TZS 597.85 billion from TZS 652.25 billion recorded in the preceding week, according to the report.
The 7-day weekly WAR averaged 6.41%, sitting 16 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 756.50 billion through 7-day reverse repurchase agreements at the CBR of 6.25%, down from TZS 893.00 billion injected 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 had 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 the Bank steers towards it.
The main instruments are 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 raised the CBR from 5.75% to 6.25% for the third quarter of 2026, citing inflationary pressure from energy, fertilizer and transport costs.
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