Tanzania’s financial markets closed the week to 9 October 2026 with the Treasury bills auction undersubscribed by TZS 79.20 billion, as investors tendered TZS 309.50 billion against an offered TZS 388.70 billion.
The Bank of Tanzania (BOT) released the figures on 12 October 2026 in its seventh Domestic Financial Markets Weekly Report, a publication it launched in 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 Treasury bills auction No. 1208 held on 7 October 2026 offered the 35, 91, 182 and 364-day tenors and attracted 54 bids, of which 49 were successful.
Investors tendered TZS 309.50 billion against an offered amount of TZS 388.70 billion, an undersubscription of TZS 79.20 billion that left total allotment at TZS 279.40 billion.
The weighted average yields settled at 3.3584% for the 35-day, 3.4908% for the 91-day, 5.6295% for the 182-day and 6.2839% for the 364-day tenor.
The 182-day tenor was the only one to draw excess demand, attracting TZS 130.00 billion against TZS 99.90 billion offered for a bid-to-cover ratio of 1.30x.
The 35-day tenor was the weakest subscribed, drawing bids of only TZS 10.00 billion against TZS 49.90 billion offered for a bid-to-cover ratio of 0.20x.
The 364-day tenor attracted TZS 127.50 billion against TZS 169.00 billion offered, while the 91-day tenor drew TZS 42.00 billion against TZS 69.90 billion offered.
Banks accounted for 99.98% of subscriptions and were allotted TZS 279.33 billion, equivalent to 99.97% of the total amount placed at the auction.
Individuals and Companies accounted for the remaining 0.02% of subscriptions and were allotted TZS 0.07 billion, representing 0.03% of the total allotment.
Outstanding Government Securities stood at TZS 33,564.32 billion, comprising Treasury bonds worth TZS 29,990.22 billion, or 89.35% of the total, and Treasury bills worth TZS 3,574.10 billion, or 10.65%.
Banks held the largest share of that stock at 34.06%, worth TZS 11,432.15 billion, followed by Pension Funds at 30.14%, worth TZS 10,117.34 billion.
Retail Investors held 17.53% worth TZS 5,883.12 billion, Collective Investment Schemes and other official entities 8.09% worth TZS 2,714.81 billion, and Insurance Companies 7.29% worth TZS 2,446.86 billion.
The Bank onboarded 3,103 new clients in the current fiscal year, lifting the total number of registered investors in government securities to 34,605.
The next government securities auction is scheduled for Wednesday 14 October 2026, when a 25-year Treasury bond will be offered in line with the issuance calendar.
Foreign Exchange Market
The shilling appreciated 0.38% over the week to close at TZS 2,631.36 against the US dollar, from TZS 2,641.42 at the end of the previous week.
Turnover on the Interbank Foreign Exchange Market (IFEM) decreased to USD 22.30 million from USD 29.90 million recorded a week earlier.
Retail foreign exchange transactions edged down to USD 533.81 million from USD 536.19 million recorded in the preceding week, according to the report.
Trade accounted for the largest share of retail turnover at USD 174.70 million, followed by Oil & Energy at USD 74.18 million and Mining at USD 59.31 million.
Over the past month, daily retail foreign exchange transactions averaged USD 125.52 million, with sales averaging USD 62.79 million and purchases averaging USD 62.73 million.
Against other currencies the shilling closed at TZS 3,476.29 to the British Pound Sterling, TZS 2,944.49 to the Euro, TZS 392.59 to the Chinese Yuan and TZS 20.25 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 declined to TZS 748.35 billion from TZS 927.45 billion recorded in the preceding week, according to the report.
The 7-day weekly WAR averaged 6.47%, sitting 22 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 252.43 billion through 7-day reverse repurchase agreements at the CBR of 6.25%, down from TZS 272.98 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 as its anchor.
Within that framework the Central Bank Rate serves as the policy rate, while the 7-day interbank cash market rate is the operating target the Bank steers towards it.
Its 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 set the Central Bank Rate at 6.25% for the third quarter of 2026, holding the corridor of 4.75% to 7.75% within which the weekly operating target fluctuated.
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